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City and County- of San Francisco 

Meeting Minutes 

Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B. 

Goodlett Place 

San Francisco, CA 

94102^*689 



Wednesday, May 05, 1999 



10:00 AM 

Regular Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 

The meeting convened at 10: 10 a.m. 

CONSENT AGENDA 



DOCUMENTS DEPT, 

JUN 1 6 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 



All matters listed hereunder constitute a Consent Agenda, are considered to be routine and will be acted upon 
by a single roll call vote of the Committee. There will be no separate discussion of these items unless a 
member of the Committee so requests, in which event the matter shall be removed from the Consent Agenda 
and considered as a separate item. 

990769 [Emergency Repair, Polk Street Brick Sewer] 

Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate 
brick sewer on Polk Street from Grove Street to McAllister Street - $98,330. (Public Utilities Commission) 
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 
RECOMMENDED.. 



990770 [Emergency Repair. Harrison Street Sewer] 

Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate 

sewer on Hamson Street from 5 th Street to 6th Street and to modify the existing Merlin-Morris Pump Station 

$599,077. (Public Utilities Commission) 

4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

RECOMMENDED.. 



990771 [Emergency Repair, Green Street Sewer] 

Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate 
brick sewer on Green Street from Polk Street to Van Ness Avenue - 5178,121. (Public Utilities Commission) 
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 
RECOMMENDED.. 



City and County of San Francisco 



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Finance and Labor Committee 



Meeting Minutes 



May 5, 1999 



990772 [Emergency Repair, 60 Scenic Way Easement Sewer] 

Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate 
easement sewer on 60 Scenic Way at 26th Avenue - $73,074. (Public Utilities Commission) 
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 
RECOMMENDED.. 



990773 [Emergency Repair, Howard/First Streets Sewer] 

Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate 
sewer at the intersection of Howard and First Streets - $1 13,800. (Public Utilities Commission) 
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 
RECOMMENDED.. 



990774 [Emergency Repair, Polk Street Brick Sewer] 

Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate 
brick sewer on Polk Street from Sutter Street to Bush Street - $3 10,650. (Public Utilities Commission) 
4/2 1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 
RECOMMENDED.. 



990775 [Emergency Repair, Van Ness Avenue Brick Sewer] 

Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate 
brick sewer on Van Ness Avenue from McAllister Street to Golden Gate Avenue - $237,490. (Public Utilities 
Commission) 

4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 
RECOMMENDED.. 

The foregoing items were acted upon by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



REGULAR AGENDA 



990681 [Prop J Contract, Legal Process Server Services] 

Resolution concurring with the Controller's certification that legal process server services can be practically 
performed for the District Attorney, Family Support Bureau, by a private contractor for a lower cost than 
similar services performed by City and County employees. (District Attorney) 
4/8/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Ed Harrington, Controller; Supervisor 
Ammiano. 

RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



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Finance and Labor Committee 



Meeting Minutes 



May5, 1999 



990721 [Prop J Contract, Facility Security Services] 

Resolution concurring with the Controller's certification that facility security services for the Public 

Transportation Commission can be practically performed by a private contractor at a lower cost than by City 

and County employees. (Public Transportation Commission) 

4/14/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Ed Harrington, Controller; Supervisor Yee; 

Supervisor Ammiano. Amended to provide retroactivity; new title. 

AMENDED. 

Resolution concurring retroactively, with the Controller's certification that facility security services for the 
Public Transportation Commission can be practically performed by a private contractor at a lower cost than by 
City and County employees. (Public Transportation Commission) 
RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



990720 [Lease of Property, 30 Van Ness Avenue] 

Resolution authorizing a lease at 30 Van Ness Avenue (3rd Floor), for the Employee Retirement System. (Real 
Estate Department) 

4/14/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers; Harvey Rose. Budget Analyst; Tony DeLucchi, Real Estate Department: 
Claire Murphy. Executive Director, Retirement System; Supervisor Yee; Supervisor Ammiano. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



990725 [Lease of Property, 225 Valencia Street] 

Resolution authorizing the lease of real property at 225 Valencia Street, 1st and 2nd Floors, for the Department 
of Human Services. (Real Estate Department) 
4/14/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Tony DeLucchi, Real Estate Department; Jan 
Esbaugh. Human Resources Department; Supervisor Ammiano; Supervisor Bierman; Supervisor Yee. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



990726 [Appropriation, Emergency Communications Department] 

Ordinance appropriating $2,773,766. Emergency Communications Department, City Wide Communication 
Series 1993 Bond proceeds and interest income, for the purchase of Motorola mobile desktop radio units and 
accessories, and installation of a fiber optic Metropolitan Area Network (MAN) for fiscal year 1998-1999. 
(Mayor) 

(Fiscal impact.) 

4/14/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Harvey Rose, Budget Analyst; Mike Martin. Emergency Communications Department; Supervisor Yee; 

Supervisor Ammiano. Amended to indicate the correct source of funds. "Series 1 993 " should be "Series 1 998- 

I and J 999-1"; new title. 

AMENDED. 



City and County of San Francisco 



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Finance and Labor Committee 



Meeting Minutes 



May 5, 1999 



Ordinance appropriating $2,773,766, Emergency Communications Department, City Wide Communication 
Series 1998-1 and 1999-1 Bond proceeds and interest income, for the purchase of Motorola mobile desktop 
radio units and accessories, and installation of a fiber optic Metropolitan Area Network (MAN) for fiscal year 
1998-1999. (Mayor) 

(Fiscal impact.) 

RECOMMENDED AS AMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



990762 [Roof Equipment License Agreement) 

Resolution authorizing a retroactive roof equipment license extension agreement for 555 California Street for 
the Municipal Railway. (Real Estate Department) 
4/19/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose. Budget Analyst; Supervisor Ammiano; Charles Lewis, 
Municipal Railway; Tony DeLucchi, Real Estate Department. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



990732 [Reserved Funds, Municipal Railway] 

Hearing to consider release of reserved funds, Municipal Railway, (Federal Surface Transportation funds. File 
94-92-8, Resolution No. 906-92), in the amount of $423,862, to fund the MUNI Metro Tunnel modifications. 
(Public Transportation Commission) 

4/15/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 
Continued to May 12, 1999 at the request of the Department. 
CONTINUED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



990801 [Reserved Funds, Dept of Administrative Services| 
Supervisor Yee 

Hearing to consider release of reserved funds, Department of Administrative Services, (Fiscal Year 1998-1999 
Budget), in the amount of $350,000 to fund the City Hall Child Care Center. (Administrative Services 
Department) 

4/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Debra Alvarez, Mayor's Office of Children, 
Youth & Their Families; Supervisor Bierman; Supervisor Ammiano; Supervisor Yee; Steve Nelson. 
Department of Administrative Services; Joe Wilson, Coleman Advocates. Continued to May 12, 1999. 
CONTINUED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



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Finance and Labor Committee Meeting Minutes May 5, 1999 



990424 |Paid Maternity Leave) 
Supervisor Ammiano 

Hearing on the fiscal impact of one year paid maternity leave for employees of the City and County of San 
Francisco and tax incentives for business that provide one year paid maternity leave for its employees. 
3/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Supervisor Ammiano; Clarice Duma, Legislative Analyst; Harvey Rose. 
Budget Analyst; Michelle Modina, Department of Human Resources; Susan Leal, Treasurer; Richard Sullivan, 
Tax Collector; Ed Harrington, Controller; Ann Lehman, Policy Analyst, Commission on the Status of Women; 
Alice Nakahara, M.A.,; Mai Mai Quon Ho, Executive Director, Asian Perinatal Services; Robin Levi. Women's 
Institute for Leadership Development for Human Rights; Mildred Crear, RN, MPH, Director, Bureau of 
Children, Youth & Families, Department of Public Health; Joe Wilson, Coleman Advocates. 
CONTINUED TO CALL OF THE CHAIR by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



ADJOURNMENT 

The meeting adjourned at 12:35 p.m. 



City and County of San Francisco 5 Printed at 5:43 PM on 5/6*9 






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CITY AND COUNTY 



Public Library,Gov't Info. Ctr., 5 th Fir. 
Attn: Susan Horn 



ofsanfrancisc(P OCUM ENTS DEPT. 

MAY 4 1999 

SA 
BOARD OF SUPERVISORS 




SAN FRANCISCO 
p UBLIC LIBRARY 



BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 

FAX (415) 252-0461 



April 30, 1999 
TO: ..Finance and Labor Committee 

FROM: . Budget Analyst fo^^M.^ *c ~<e±i^ J '. 
SUBJECT: May 5, 1999 Finance and Labor Committee Meeting 
Item 1 - File No. 99-0769 



Department: 
Item: 

Amount: 
Source of Funds: 
Description: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving the expenditure of funds for the 
emergency work to replace a structurally inadequate 
sewer on Polk Street between Grove and McAllister 
Streets. 

$98,330 

FY 1998-99 PUC Repair and Replacement Fund 

The Public Utilities Commission (PUC) advises that on 
October 30, 1998, the sewer located on Polk Street 
between Grove and McAllister Streets failed, and 
immediate replacement was required in order to protect 
the health, welfare, and property of the citizens of San 
Francisco. The PUC declared an emergency on November 
2, 1998. In accordance with Section 6.30 of the 
Administrative Code, the PUC initiated expedited 
contract procedures, and awarded a contract to Uniacke 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



Budget: 



Construction, Inc. which submitted the lowest quotation 
in the amount of $101,550. 

The total actual project cost was $98,330, including 
$77,380 in actual construction costs (or $24,170 less than 
the contract award amount, see Comment No. 2) and 
$20,950 for DPW engineering and construction 
management costs. 

A summary of this budget is as follows: 

Construction Contract $77,380 

DPW Bureau of Engineering 1 1 ,650 

DPW Bureau of Construction Management 9,300 



Total 



$98,330 



Comments: 



1. Invitations for proposals were faxed to 30 contractors 
on November 3, 1998. Five quotations were received by 
PUC from qualified contractors on November 5, 1998. 
PUC reports that Uniacke Construction, Inc. submitted 
the lowest quotation and was awarded the contract in the 
amount of $101,550. The following table lists the 
contractors who submitted quotations and the amounts of 
the quotations: 



Contractor 



Quotation 



Uniacke Construction, Inc. $101,550 

Shaw Pipeline, Inc. $106,850 

J.M.B. Construction, Inc. $117,960 

Golden Pacific Construction, Inc. $165,370 
Troy's Contracting & 

Trinet Construction, Inc. $166,490 

2. PUC reports that although the contract was awarded 
in the amount of $101,550, the final contract cost, after 
adjustment for actual quantities used during 
construction, was $77,380 or $24,170 less than the 
contract amount of $101,550. 

3. PUC reports that the replacement of the damaged 
sewer began on November 9, 1998, and was completed on 
November 20, 1998. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

2 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



4. Mr. P.T. Law of DPW advises tbat due to various 
delays in receiving expenditure documentation from the 
contractor, the PUC is requesting approval of this 
resolution over five months after the construction work 
was completed. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

3 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

Item 2 - File No. 99-0770 



Department: 



Item: 



Amount: 
Source of Funds: 
Description: 



Budget: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving the expenditure of funds for the 
emergency work to replace a structurally inadequate 
sewer on Harrison Street between 5th and 6th Streets 
and to modify the existing Merlin-Morris Pump Station 
on Morris Street between Bryant and Harrison Streets. 

$599,077 

FY 1998-99 PUC Repair and Replacement Fund 

The Public Utilities Commission (PUC) advises that on 
July 13, 1998, the sewer located on Harrison Street 
between 5th and 6th Streets failed, and immediate 
replacement was required in order to protect the health, 
welfare, and property of the citizens of San Francisco. 
PUC also advises that modifications to the Merlin-Morris 
Pump Station, located on Morris Street between Bryant 
and Harrison Streets, were required in order to prevent 
further failures of the subject sewer. The PUC declared 
an emergency on August 20, 1998. In accordance with 
Section 6.30 of the Administrative Code, the PUC 
initiated expedited contract procedures, and awarded a 
contract to Troy/Trinet Construction-JV in the amount of 
$504,077 

The total estimated project cost is $599,077, including 
$504,077 in actual construction costs and $95,000 for 
DPW engineering and construction management costs. 

A summary of this budget is as follows: 

Construction Contract $504,077 

DPW Bureau of Engineering 55,000 

DPW Bureau of Construction Management 40.000 

Total $599,077 



Comments: 



1. Invitations for proposals were faxed to 28 contractors 
on September 16, 1998. Three quotations were received 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



by PUC from qualified contractors on September 21, 1998. 
PUC reports that D'Arcy & Harty Construction submitted 
the lowest quotation in the amount of $484,990. 
However, according to Mr. P.T. Law of DPW, after 
application of business enterprise preferences in 
accordance with Chapter 12D of the San Francisco 
Administrative Code, Troy/Trinet Construction-JV, which 
submitted the second lowest quotation, was awarded the 
contract in the amount of $504,077. A preference of 
approximately $50,408 or 10 percent was applied to the 
Troy/Trinet Construction-JV quotation, resulting in the 
lowest adjusted quotation of $453,669. The following 
table lists the contractors who submitted quotations and 
the amounts of the quotations: 

Contractor Quotation 

D'Arcy & Harty Construction $484,990 

Troy/Trinet Construction-JY $504,077 

K.J. Woods Construction $648,000 

2. PUC reports that both the replacement of the damaged 
sewer and modification of the pump station began on 
October 1, 1998. The replacement of the damaged sewer 
was completed on December 24, 1998. However, 
according to Mr. Law, the pump station modifications 
have not been completed because the contractor is waiting 
for pump components and instrumentation from the 
manufacturer. Mr. Law advises that the pump station 
modifications are expected to be completed in Mav of 
1999. 

3. Mr. Law advises that due to various delays in 
receiving expenditure documentation from the contractor, 
the PUC is requesting approval of this resolution over 
seven months from the start of the construction work. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

5 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

Item 3 - File No. 99-0771 



Department: 



Item: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving tbe expenditure of funds for the 
emergency work to replace a structurally inadequate 
sewer on Green Street between Polk Street and Van Ness 
Avenue. 



Amount: 
Source of Funds: 
Description: 



Budget: 



$178,121 

FY 1998-99 PUC Repair and Replacement Fund 

The Public Utilities Commission (PUC) advises that on 
August 4, 1998, the sewer located on Green Street 
between Polk Street and Van Ness Avenue failed, and 
immediate replacement was required in order to protect 
the health, welfare, and property of the citizens of San 
Francisco. The PUC declared an emergency on August 
12, 1998. In accordance with Section 6.30 of the 
Administrative Code, the PUC initiated expedited 
contract procedures, and awarded a contract to J.M.B. 
Construction, Inc. which submitted the lowest quotation 
in the amount of $146,105. 

The total actual project cost was $178,121, including 
$145,471 in actual construction costs (or $634 less than 
the contract award amount, see Comment No. 2) and 
$32,650 for DPW engineering and construction 
management costs. 

A summary of this budget is as follows: 

Construction Contract $145,471 

DPW Bureau of Engineering 17,650 

DPW Bureau of Construction Management 15.000 



Total 



$178,121 



Comments: 



1. Invitations for proposals were faxed to 29 contractors 
on September 9, 1998. Three quotations were received by 
PUC from qualified contractors on September 14, 1998. 
PUC reports that J.M.B. Construction, Inc. submitted the 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

6 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



lowest quotation and was awarded the contract in the 
amount of $146,105. The following table lists the 
contractors who submitted quotations and the amounts of 
the quotations: 

Contractor Quotation 

J.M.B. Construction, Inc. $146,105 

Troy/Trinet Construction-JV $157,650 

NCCI/Shimmick-JV $238,490 

2. PUC reports that although the contract was awarded 
in the amount of $146,105, the final contract cost, after 
adjustment for actual quantities used during 
construction, was $145,471 or $634 less than the contract 
amount of $146,105. 

3. PUC reports that the replacement of the damaged 
sewer began on September 21, 1998 and was completed 
on October 13, 1998. 

4. Mr. P.T. Law of DPW advises that due to various 
delays in receiving expenditure documentation from the 
contractor, the PUC is requesting approval of this 
resolution over six months after the construction work 
was completed. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

Item 4 - File No. 99-0772 



Department: 



Item: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving the expenditure of funds for the 
emergency work to replace a structurally inadequate 
sewer located at 60 Scenic Way between 25 th and 26 th 
Avenues. 



Amount: 
Source of Funds: 
Description: 



Budget: 



Comments: 



$73,074 

FY 1998-99 PUC Repair and Replacement Fund 

The Public Utilities Commission (PUC) advises that on 
July 16, 1998, the sewer located at 60 Scenic Way 
between 25 th and 26 th Avenues failed, and immediate 
replacement was required in order to protect the health, 
welfare, and property of the citizens of San Francisco. 
The PUC declared an emergency on July 20, 1998. In 
accordance with Section 6.30 of the Administrative Code, 
the PUC initiated expedited contract procedures, and 
awarded a contract to J.M.B. Construction in the amount 
of $50,000. 

The total actual project cost was $73,074, including 
$53,324 in actual construction costs (or $3,324 more than 
the contract award amount, see Comment No. 2) and 
$19,750 for DPW engineering and construction 
management costs. 

A summary of this budget is as follows: 

Construction Contract $53,324 

DPW Bureau of Engineering 9,650 

DPW Bureau of Construction Management 10.100 

Total $73,074 

1. PUC reports that it did not utilize an Invitation for 
Proposals process to award the contract because the 
emergency at 60 Scenic Avenue required immediate 
remedial action to ensure public safety. Instead, PUC 
contacted the first available qualified contractor capable 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



of performing the subject emergency work and awarded 
the contract to J.M.B. Construction, Inc. in the amount of 
$50,000. 

2. As noted above, PUC awarded the contract in the 
amount of $50,000. However, the final contract cost was 
$53,324,000 (or $3,324 more than the contract amount of 
$50,000) because, according to Mr. P.T. Law of DPW, 
DPW requested a change order to the contract for the 
contractor to perform unanticipated additional work 
reinforcing the support structure of the damaged sewer. 

3. PUC reports that the replacement of the damaged 
sewer began on August 3, 1998, and was completed on 
November 2, 1998. 

4. Mr. Law advises that due to various delays in 
receiving expenditure documentation from the contractor, 
the PUC is requesting approval of this resolution 
approximately six months after the construction work was 
completed. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

9 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

Item 5 - File No. 99-0773 



Department: 
Item: 

Amount: 
Source of Funds: 
Description: 



Budget: 



Comments: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving tbe expenditure of funds for the 
emergency work to replace a structurally inadequate 
sewer at the intersection of Howard and First Streets. 

$113,800 

FY 1998-99 PUC Repair and Replacement Fund 

The Public Utilities Commission (PUC) advises that on 
March 24, 1999, the sewer located at the intersection of 
Howard and First Streets failed, and immediate 
replacement was required in order to protect the health, 
welfare, and property of the citizens of San Francisco. 
The PUC declared an emergency on March 26, 1999. In 
accordance with Section 6.30 of the Administrative Code, 
the PUC initiated expedited contract procedures, and 
awarded a contract to J.M.B. Construction, Inc. which 
submitted the lowest quotation in the amount of $88,150. 

The total actual project cost was $113,800, including 
$88,150 in actual construction costs and $25,650 for DPW 
engineering and construction management costs. 

A summary of this budget is as follows: 

Construction Contract $88,150 

DPW Bureau of Engineering 15,650 

DPW Bureau of Construction Management 10.000 



Total 



$113,800 



1. Invitations for proposals were faxed to 26 contractors 
on March 29, 1999. Four quotations were received by 
PUC from qualified contractors on March 30, 1999. PUC 
reports that J.M.B. Construction, Inc. submitted the 
lowest quotation and was awarded the contract in the 
amount of $88,150. The following table lists the 
contractors who submitted quotations and the amounts of 
the quotations: 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

10 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



Contractor 


Quotation 


J.M.B. Construction, Inc. 


$88,150 


Shaw Pipeline, Inc. 


$93,950 


K.J. Woods Construction 


$134,000 


Miller Thompson Construction 


$219,935 



2. PUC reports that the replacement of the damaged 
sewer began on April 5, 1999 and is expected to be 
completed on May 7, 1999. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

11 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

Item 6 - File No. 99-0774 



Department: 
Item: 

Amount: 
Source of Funds: 
Description: 



Budget: 



Comments: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving the expenditure of funds for the 
emergency work to replace a structurally inadequate 
sewer on Polk Street between Sutter and Bush Streets. 

$310,650 

FY 1998-99 PUC Repair and Replacement Fund 

The Public Utilities Commission (PUC) advises that on 
November 5, 1998, the sewer located on Polk Street 
between Sutter and Bush Streets failed, and immediate 
replacement was required in order to protect the health, 
welfare, and property of the citizens of San Francisco. The 
PUC declared an emergency on November 9, 1998. In 
accordance with Section 6.30 of the Administrative Code, 
the PUC initiated expedited contract procedures, and 
awarded a contract to K.J. Woods Construction which 
submitted the lowest quotation in the amount of $214,000. 

The total actual project cost was $310,650, including 
$260,000 in actual construction costs (or $46,000 more 
than the contract award amount, see Comment No. 2) and 
$50,650 for DPW engineering and construction 
management costs. 

A summary of this budget is as follows: 

Construction Contract $260,000 

DPW Bureau of Engineering 27,650 

DPW Bureau of Construction Management 23.000 

Total $310,650 

1. Invitations for proposals were faxed to 28 contractors 
on November 13, 1998. Six quotations were received by 
PUC from qualified contractors on November 17, 1998. 
PUC reports that K.J. Woods Construction submitted the 
lowest quotation and was awarded the contract in the 
amount of $214,000. The following table lists the 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

12 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



contractors who submitted quotations and the amounts of 
the quotations: 

Contractor Quotation 

K.J. Woods Construction $214,000 

Golden Pacific Construction. Inc. $217,260 

Shaw Pipeline, Inc. $224,840 

J.M.B. Construction, Inc. $236,800 

Harty Pipelines, Inc. $248,155 

Troy/Trinet Construction-JV $287,225 

2. As noted above, PUC awarded the contract in the 
amount of $214,000. However, the final contract cost was 
$260,000 (or $46,000 more than the contract amount of 
$214,000) because, according to Mr. P.T. Law of DPW, 
DPW requested a change order to the contract for the 
contractor to perform additional work removing 
unforeseen subsurface obstructions to the damaged sewer. 

3. PUC reports that the replacement of the damaged 
sewer began on November 23, 1998, and was completed on 
February 24, 1999. 

4. Mr. Law advises that due to various delays in receiving 
expenditure documentation from the contractor, the PUC 
is requesting approval of this resolution over two months 
after the construction work was completed. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

13 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

Item 7 - File No. 99-0775 



Department: 



Item: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving the expenditure of funds for the 
emergency work to replace a structurally inadequate 
sewer on Van Ness Avenue between McAllister Street and 
Golden Gate Avenue. 



Amount: 
Source of Funds: 
Description: 



Budget: 



Comments: 



$237,490 

FY 1998-99 PUC Repair and Replacement Fund 

The Public Utilities Commission (PUC) advises that on 
October 30, 1998, the sewer located on Van Ness Avenue 
between McAllister Street and Golden Gate Avenue 
failed, and immediate replacement was required in order 
to protect the health, welfare, and property of the citizens 
of San Francisco. The PUC declared an emergency on 
November 9, 1998. In accordance with Section 6.30 of the 
Administrative Code, the PUC initiated expedited 
contract procedures, and awarded a contract to J.M.B. 
Construction, Inc. which submitted the lowest quotation 
in the amount of $170,242. 

The total actual project cost was $237,490, including 
$204,840 in actual construction costs (or $34,598 more 
than the contract award amount, see Comment No. 2) and 
$32,650 for DPW engineering and construction 
management costs. 

A summary of this budget is as follows: 

Construction Contract $204,840 

DPW Bureau of Engineering 17,650 

DPW Bureau of Construction Management 15.000 



Total 



$237,490 



1. Invitations for proposals were faxed to 28 contractors 
on November 10, 1998. Four quotations were received by 
PUC from qualified contractors on November 12, 1998. 
PUC reports that J.M.B. Construction, Inc. submitted the 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



lowest quotation and was awarded the contract in the 
amount of $170,242. The following table lists the 
contractors who submitted quotations and the amounts of 
the quotations: 

Contractor Quotation 

J.M.B. Construction Inc. $170,242 
Troy's Contracting & 

Trinet Construction, Inc. $173,840 

Shaw Pipeline, Inc. $194,940 

Golden pacific Construction, Inc. $198,965 

2. As noted above, PUC awarded the contract in the 
amount of $170,242. However, the final contract cost was 
$204,840 (or $34,598 more than the contract amount of 
$170,242) because, according to Mr. P.T. Law of DPW, 
DPW requested a change order to the contract in the 
amount of $20,111 for the contractor to work nights and 
weekends in order to prevent further traffic congestion on 
Van Ness Avenue and increased the contract in the 
amount of $14,487 to account for actual quantities used 
during construction. 

3. PUC reports that the replacement of the damaged 
sewer began on November 16, 1998 and was completed on 
December 17, 1998. 

4. Mr. Law advises that due to various delays in 
receiving expenditure documentation from the contractor, 
the PUC is requesting approval of this resolution over 
four months after the construction work was completed. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

15 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



Item 8 - 99-0681 

Department: 

Item: 



Services to be 
Performed: 

Description: 



District Attorney, Family Support Bureau (FSB) 

Resolution concurring witb tbe Controller's certification 
tbat legal process server services can continue to be 
practically performed by a private contractor for a lower 
cost than similar work services performed by City and 
County employees. 



Legal Process Server Services 

Charter Section 10.104 provides that the City may 
contract with private firms for services which had been 
performed by City employees if the Controller certifies, 
and the Board of Supervisors concurs, that such services 
can in fact be performed by private firms at a lower cost 
than similar work services performed by City and Country - 
employees. Legal Process Server Services for the District 
Attorney's Family Support Bureau (FSB) consist of 
locating and serving non-custodial parents of children 
with court orders and other legal documentation 
pertaining to their obligation to provide child support to 
the custodial parents of those children. 

The Controller has determined that contracting for the 
legal process server services at the FSB for FY 1999-2000 
would result in estimated savings as follows: 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

16 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



Citv-Qperated Service Costs 



Salaries 
Fringe Benefits 
Operating Costs 

Total 



Lowest 
Salary 
Step 

$276,526 
87,437 
59.040 

$423,003 



Contractual Services Cost* 175.243 



Highest 
Salary 

Step 

$326,531 
95,297 
59.040 

$480,868 

179.847 



Comments: 



Estimated Savings 



$247,760 



$301,021 



*Includes a 0.5 FTE 8158 Family Support Investigator II 
position for contract monitoring, at a Step 1 annual cost of 
$42,047 and a Step 5 annual cost of $51,026. 

1. Legal process server services for the FSB were first 
certified as required by Charter Section 10.104 in 1985 
and have been provided by an outside contractor since 
then. 



2. The Contractual Services Cost used by the Controller's 
Office is the amount budgeted by the FSB for these 
services in FY 1999-2000, and is based on their projected 
FY 1999-2000 volume of legal process server services 
required, and on the cost of these services in FY 1998- 
1999. 

3. Mr. Merlin Zimmerly of the FSB advises that the FSB 
plans to renew its one-year contract with L&L Legal 
Assistance, Inc. 



Recommendation: 



4. The Controller's supplemental questionnaire, with the 
Department's responses, is attached. 

Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

17 



Attachment 



CHARTER 8.300-1 (PROPOSITION J) QUESTIONNAIRE 

DEPARTMENT: D.A. Family Support Bureau 

CONTRACT SERVICES: Legal Process Service 

CONTRACT PERIOD: Julv 1. 1999- June 30. 2000 

(1 ) Who performed activity/service prior to contracting out? 

Four Family Support Bureau staff. 2 8102 Process Servers and 2 8158 FSB Investigator lis. 
At that time, however, the volume of required services was significantly lower that the 
current need. 

(2) Number of City employees laid off as a result of contracting out? 

Two vacant position (2 8102s) were deleted in FY 84/85 budget. 

(3) Explain disposition of employees if they were not laid off? 
N/A 

(4) What percentage of City employee's time is spent on services to be contracted out? 

N/A 

(5! How long have the services been contracted out? Is this likely to be a one-time or an 
ongoing request for contracting out? 

Since Fiscai Year 1985-85. Ongoing. 

(5) What was the first fiscal year for a Proposition J certification? Has it been certified for 
each subsequent year? 

Fiscal Year '1985-86. Yes. 

(7) How will contract services meet the goals of your MBEWBE Action Plan? 

Contractor is a Minority Business Enterprise (MSE). 

(8) Does tne proposed contract require that the contractor provide health insurance for its 
employees? Even if it is not required, does the proposed contractor provide health 
insurance for its employees? 

Contract does not require contractor to provide health insurance. However, contractor 
does provide health insurance. 

(9) Does the proposed contractor provide ber.afits to employees with spouses? If so, are the same 
benefits provided to employees with domestic partners? If not, how does the proposed 
contractor comply with the Domestic Partners ordinance? 

Contractor provides the same benefits to all employees. 

Department Representative: Merlin Zimmerlv 

Telephone Number: <A15) 356-2979 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

Item 9 - 99-0721 



Department: 



Item: 



Public Transportation Commission (PTC) 
Municipal Railway (MUNI) 

Resolution concurring with the Controller's certification 
that facility security services for the Public 
Transportation Commission can continue to be practically 
performed by a private contractor for a lower cost than 
similar work services performed by City and County 
employees. 



Services to be 
Performed: 



Description: 



Facility security services for Municipal Railway 
operations 

Charter Section 10.104 provides that the City may 
contract with private firms for services which had been 
performed by City employees if the Controller certifies, 
and the Board of Supervisors concurs, that such services 
can in fact be performed by private firms at a lower cost 
than similar work services performed by City and County 
employees. Facility security services for Municipal 
Railway (MUNI) operations consist of unarmed stationary 
and roving guards at MUNI facilities, armed guards 
attending MUNI employees involved in the handling of 
cash, tickets and passes, and security analysis and 
development of plans for improving physical security at 
MUNI facilities. 



The Controller has determined that contracting for the 
facility security services for MUNI for FY 1998-1999 
would result in estimated savings as follows: 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

19 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



Citv-Ope rated Service Costs 

Salaries 
Fringe Benefits 

Total 

Contractual Services Cost * 

Estimated Savings 



Lowest 
Salary 
Step 


Highest 

Salary 

Step 


$1,878,290 

523.376 

$2,401,666 


$2,238,341 

578.536 

$2,816,877 


1.584.048 


1.591.897 


$817,618 


$1,224,980 



Comments: 



includes a 0.5 FTE 8221 Chief, Protective Services 
position for contract monitoring, at a Step 1 annual cost of 
$71,436 and a Step 5 annual cost of $86,835. 

1. Facility security services for MUNI were first certified 
as required by Charter Section 10.104 in 1983 and have 
been provided by an outside contractor since 1975. 

2. The current three-year contract, which commenced on 
January 8, 1998 and expires on January 8, 2001, is with 
King Security Services, Inc. The Contractual Services 
Cost used by the Controller's Office was the amount 
budgeted by the PTC for the subject security services in 
FY 1998-1999, and was based on the projected FY 1998- 
1999 volume of security services required, and on the 
costs of those services in FY 1997-1998. 



Recommendation: 



3. The Controller certified the subject security services, in 
accordance with Charter Section 10.104, on December 31, 
1998. MUNI is therefore requesting approval of the 
proposed resolution approximately four months after the 
date of such certification. As such, the proposed 
resolution should be amended to provide for retroactivity. 

4. The Controller's supplemental questionnaire, with the 
Department's responses, is attached. 

Amend the proposed resolution to provide for 
retroactivity, and approve the proposed resolution as 
amended. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

20 



RFR-26-1SS9 15:44 MUNI TRSNSIT SECURITY 415 2S2 2053 P. 04 

CHARTER 10.104.15 (PROPOSITION J] QUESTIONNAIRE Attachment 

DEPARTMENT: phkh«. xsagg^ssatia Q3M1 

CONTRACT SERVICES: r.^r->>^«H^» gaeilisy g- '-» g -- rico3 

CONTRACT PERIOD: TTarrrary OS IQQfl -hm Tamy^ OB 7Cm 
(1 ) Who performed ess actr/ity/tervce prior So cantracSna, out? 

Kas HOt pt""TnT-mor] 

{2} How many Of/ employees www lad cff as a nana cfcantraeiag out? 

Bone 

(3) Explain the disposition c* employees if they were not laid off. 

N/A 

(4) WriatoercentageeiC^ employees' time's spent of services to be contracted cut? 

Approximately 501 of class 8221 position to monitor contract 

(5) Hen lone have the services been contrsciad out? I* this likely to be a cne-Sme or an c-^otng 
request for ccntrac*jng oat? 

Since 1975; Likely to be on-going 
(3) Wh3t was the first fiscal yes* tor a Pnjposison J cenrficatsn? Has it teen certified for each 
subsequent year? 

1983-54 f ju r al Year. Yea. 
CD Hew v/tC irss ssrviees mee: the goats of you.* MEE-WES Acaon Plan? 

Hiey will comply vith requireaients of FIA. DBE Program. Contractor is DSE. 
{85 Does the proposed contract require that tne contractor provide neaUh msuranca for its employees? 
Even ri net required, are health benefits provicesf 7 

Yes. Yes. 
(9) Dees the proposed contractor provide benefits to employees with spouses ? If so. are the same 
bene&a provided to emptoyesa wSh domestic partners? If not. hew does the proposed contractor 
comply with tre Domestic Partners ordinance? 

Contractor en HHC approved list for equal benefits reqxjirements 
Departrnim: Representative: p^n rhin 

Telephone Number (415) 292-2045 



TOTR. P. 02 

TOTAL P. 04 

21 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



Item 10 - File 99-0720 
Departments: 



Item: 



Department of Real Estate (DRE) 
Employees Retirement System (ERS) 

Resolution authorizing a lease of space at 30 Van Ness 
between ERS and the Herbst Foundation. 



Location: 
Purpose of Lease: 



30 Van Ness Avenue, 3 rd Floor. 

To provide additional space to accommodate ERS's growth 
over the past 15 years, from 60 employees in Fiscal Year 
1984-1985 to 78 employees in Fiscal Year 1998-1999. 
ERS is currently located at 1155 Market Street, where 
the lease expires on June 30, 1999. The annual rent at 
1155 Market Street is currently $185,689.92, or 
approximately $15.50 per square foot per year for 
approximately 11,980 square feet. The lessor at 1155 
Market Street has quoted a lease rate, effective July 1, 
1999, of $35 per square foot per year for the same space 
which, under a new lease, would be measured as 
approximately 12,400 square feet, or $434,000 annually, 
which would be $248,310.08, or over 133 percent, more 
than the existing rental rate. 



Lessor: 



The Herbst Foundation 



Lessee: 



ERS 



No. of Sq. Ft. and 
Cost Per Year: 



The proposed lease at 30 Van Ness Avenue consists of 
approximately 19,814 square feet of office and common 
space, which is approximately 7,414 square feet, or 
approximately 60 percent, more than the existing space at 
1155 Market Street. Ms. Kay Gulbengay of ERS reports 
that approximately 4,196 square feet, or 57 percent of the 
7,414 square feet of additional space, will be used to 
provide a larger area for providing service to City and 
County employees, both active and retired, and to provide 
space for presentations and counseling for large groups 
and interviews with investment managers. According to 
Ms. Gulbengay, ERS is overcrowded at 1155 Market 
Street and needs additional space to accommodate growth 
over the past 15 years in staff and members served. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

22 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



Annual Payment 
by Lessee: 



Source of Funds: 

Utilities Provided 
By Lessor: 

Janitorial Services 
By Lessor: 

Term of Lease: 

Right of Renewal: 



Description: 



The proposed annual rental payment would be 
$473,554.60 per year for the first five years, based on 
approximately $23.90 per square foot per year for 19,814 
square feet, and $548,451.48 per year for the second five 
years, based on approximately $27.68 per square foot per 
year. The initial five-year annual rental amount at 30 
Van Ness Avenue of $473,554.60 is $39,554.60, or 9.1 
percent, more than the quoted July 1, 1999, annual rental 
rate at 1155 Market Street of $434,000, if ERS were to 
remain at 1155 Market Street. However, as noted above, 
ERS would gain 7,414, or approximately 60 percent more 
square feet at 30 Van Ness Avenue than the 12,400 to be 
provided under the current lease at 1155 Market Street. 

Employee Retirement Trust Fund 



Lessor will pay for all utilities. 

Lessor will be responsible for janitorial services. 

Ten years, from August 1, 1999 through July 31, 2009. 

ERS would have two options under the proposed lease to 
extend the lease, for an additional five years each, at a 
monthly rental based on the rate for the previous term 
and adjusted to account for any increase in the Consumer 
Price Index. 

The rate of $23.90 for the first five years under the 
proposed lease at 30 Van Ness Avenue is $11.10 per 
square foot annually, or 31.7 percent less than the $35 
annual rate per square foot at 1155 Market Street. 
Consequently, ERS has requested to relocate to the 30 
Van Ness Avenue facility. 

Attachments I and II, provided by ERS, provide 
comparative data for the 1155 Market Street and 30 Van 
Ness Avenue locations. As can be seen on Attachment I. 
the number of ERS members to be served at the ERS 
facility each year is expected to increase by 37 percent 
next year, owing to the impact, according to Ms. 
Gulbengay, of the ability of City and County employees to 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



23 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

purchase prior service and repay retirement account 
shortages on a pre-tax basis, and the proposed lease at 30 
Van Ness Avenue will provide more space per employee 
than the available space at 1155 Market Street, 198 
square feet per employee versus 126 square feet per 
employee, or an increase of 57 percent. 

As can be seen on Attachment II, although the proposed 
lease at 30 Van Ness Avenue provides for an 
approximately 60 percent increase in the number of 
square feet, the cost per square foot would decrease by 
31.7 percent. 

The proposed lease requires that the lessor "at [lessor's] 
sole cost and expense . . . shall furnish and install the 
Leasehold Improvements shown on the Approved Final 
Plans in a good and professional manner in accordance 
with sound building practice." According to Mr. Charles 
Dunn of DRE, these Leasehold Improvements include 
wiring and lighting, Heating, Ventilation and Air 
Conditioning, and other work to prepare the space for use 
by ERS. According to Mr. Dunn, the estimated cost of 
these improvements is $1,000,000. ERS will reimburse 
the lessor for $32,000 in additional improvements, 
including additional floor strengthening to accommodate 
the weight of ERS's microfilm storage machines, special 
Heating, Ventilation and Air Conditioning for ERS's 
computer systems, and investment communications 
equipment needs. 

The proposed lease requires that if the lessor should 
decide to sell the property during the term of the lease (or 
any extension thereof), the lessor shall first offer to sell 
the 30 Van Ness Avenue building to the City at the 
purchase price that the property will be offered to the real 
estate market. Mr. Dunn advises that the current fair 
market value of the 30 Van Ness Avenue building is $18 
to $24 million. 

Comments: 1. According to Mr. Dunn, the proposed rent for 30 

Van Ness Avenue represents fair market value. 

2. The Fiscal Year 1998-99 ERS budget includes 
$249,044 for moving costs and other costs related to the 
ERS relocation to 30 Van Ness Avenue. ERS anticipates 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

24 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



additional expenditures of $37,300 related to the 
relocation of their office, and have requested funds for this 
purpose in their proposed FY 1999-2000 budget. 

3. Based on (a) the representations of ERS that 
existing ERS space conditions are overcrowded at 1155 
Market Street, (b) based on the 31.7 percent reduction in 
the rental rate per square foot at the proposed 30 Van 
Ness site, and (c) based on an examination of all of the 
relevant data presented by ERS, the Budget Analyst 
believes it is reasonable for ERS to relocate to larger 
space at 30 Van Ness Avenue. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

25 



PFR-2S-1SS9 11:46 



CCSF RE=L E5TRTE DEFT 



415 532 S21S P. 02/03 



Attachment I 



ATTACHMENT #1 





11«5 Market 


30 Van Neat 

Prooosed 


Iacrtue 
Over 1155 Market 


* ed Members Served 


29,217 


40,000' 


37% 


# at Rearemeat ImployesT 


78 


79 


1% 


Membera Served Per Employee 


374 


506 


35% 


Area* 


10,006 si 


15,618 si 


56% 


Area Per Employes 


126 si 


198 si 


57% 



It should be noted that over the past 15 years not only has the number of City employees 
(members) served increased 84% but the overall size of the fund has grown from S2.1 
billion in 1984 to S9.8 Billion in 1997, a 366% increase. 



Notes: 



1. Estimated impact of the Pretax Buy-Bade, next year. 

2. Tnr-in^-ft employees and on site vendors and consultant 1 ; 

3. Excludes members and other non-employes areas. 



L\users\CD\wpl50\*099\BudAna4.dcc 



26 



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27 



SFR-27-1SS9 12: 11 C CSF REAL ESTATE DE?T 

Attachment III 



Specialty costs per landlord: 

HVAC System; S 7,939 

Floor support & Comm: 24,0OO ± " 

Total: S32,000± 



Notes: 

1 In order for the Landlord to provide an exact price fcr this construcdon, full working 
drawings will need to be pr e p ar ed by a certified structural engineer and such drawinzs will need 
to be approved by the City's Department cf Building Inspection.. Along with the actual cost cf 
the floor strengthening, the Ciry is responsible for the cost of such drawings (52,500 which is 
included in the S24000 estimate). Tae Cky dees not want to pay for these drawings without the 
approval of the overall transaction by the Board of Supervisors. 



CD:WP\S099\Buc3 Anal Attach, doc 



TOTPL P. 02 

28 




CFR-2S-1SS9 16:27 S.F. RETIR=>£HT SrSTEM 415 534 1522 P. 21/22 

City and County of San Francisco San Francisco City and Ccunty 

Employees 5 Retirement System 
Office of The Eiscirtiy^kactcr 

, - * " A-tac'rjner.t IV 

'??.?.£ i cf 2 

Memorandum 

DATE: March 22, 1299 

TO: Christine Ragan, Rscai and Fclicy Analyst 

FROM: Clare M. Murphy, Executive Directcr 

RE: 1 998-1 SS9 Moving Expense 



The Retirement System jf998-1 999, 0^ get provides fcr S24S.044 to 
cover move related expenses. At the present time several items are 
out for bid or will be bid in the next two weeks (see *"). Following sre 
the items for which we have firm bids and best estimates fcr items 
out to bid: 



Telephone and wiring $122,SOi 



Spaca Planning S 15,000 

$10,GOO expended to 
date, balance encumbered 



Computer Equipment 

Move S 16,200 estima:ed as 

of 1/98 - 



Dismantling/Reinstalling 
existing office furniture 

Moving expanses furniture 

records, 

Eiqreceived to date 


S 
as 

S4 


16,800 estimated 
cf 1/98" 

5,000 estimated 1> 
5 12,000 

s e.cco 









{*1S} S£*-l£2n IMSUarxntStn-mt £an F.-ancizcc, CA S41 03-1 £= 

29 



. ^-2E-i=59 16:27 „_ RETIRED S^THM 

g 

-. Structural Engineering 517,000 to 24,000 

Real Estate Wcrkorcer 

••— (additional request) S12.S00 

TOTAL (except items pending bids") . $205,304 

TOTAL (inducing bast estimates of S279.404 
pending bids) 

Several items were net contemplated in preparing the 1S98-1SS3 
budget indude: 

- Structural Engineering changes — 

- HVAC requirements 

- Additicnai Real Estate wcriccrder. — 

These "items total in excess cf $37,300 



415 554 1523 



P.e2/B2 



Acoacnment ~V 
Page 2 of 2 



\H¥F^i 



3 



TCTft. r.22 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

Item 11 -99-0725 



Department: 



Item: 



Department of Human Services (DHS) 
Department of Real Estate (DRE) 

Resolution authorizing a new lease of real property of the 
1 st and 2 nd floors at 225 Valencia Street. 



Location: 
Purpose of Lease: 



Lessor: 
Lessee: 



225 Valencia Street 

To provide additional leased space for additional program 
needs and to alleviate reported overcrowded conditions for 
the Department of Human Services (DHS) Family and 
Children Services (FCS) Division located in the City- 
owned building at 170 Otis Street. The proposed lease 
would relocate 50 existing FCS employees from 170 Otis 
Street to the proposed space at 225 Valencia Street. 

Valencia Street LLC 



DHS 



No. of Sq. Ft. and 
Cost Per Month: 



Annual Cost: 



The proposed space at 225 Valencia consists of 
approximately 12,750 square feet of office and common 
area space at $1.56 per square foot per month for the first 
two years, $1.65 per square foot per month for the third 
and fourth years, and $1.72 per square foot per month for 
the fifth, sixth and seventh years. 

$238,680 for the first two years, $252,450 for the third 
and fourth years, and $263,160 for the fifth, sixth and 
seventh years. 



Utilities and 
Janitorial Services: 



Term of Lease: 



All costs for utilities and janitorial services would be the 
responsibility of the City. 

The proposed lease would commence on June 15, 1999 or 
upon completion of tenant improvements (expected within 
approximately 60 days after approval of the proposed 
resolution) whichever is later, and expire seven years 
thereafter. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

31 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



Right of Renewal: 



Source of Funds: 



Description: 



The City would have the option to extend the term for one 
additional period of five years at 100 percent of the fair 
market rent. Ms. Claudine Venegas of the DRE states 
that the fair market rent would be determined through 
mutual negotiations between the City and the Lessor. 

37% Federal Grant Funds, 27% State Grant Funds and 
36% General Fund which will be included in DHS's FY 
1999-2000 budget. 

According to Mr. Jan Esbaugh of DHS, the proposed lease 
would provide space for the Family and Children's 
Services Program (FCS) to relocate 50 children's welfare 
and support staff positions and related programs from 170 
Otis Street to 225 Valencia Street. The following FCS 
programs, which are currently located at 170 Otis Street 
and staffed by the 50 FCS positions to be relocated, would 
be moved to 225 Valencia Street: 



• Independent Living Skills Program which prepares 
foster youth to emancipate from foster care; 

• One Child Welfare Unit; 

• Visitation Room where parents can visit their children 
who are in foster care; 

• Foster Care Licensing Unit and Foster Parent 
Resource Room which provide mandatory training of 
foster parents. 

The proposed lease at 225 Valencia Street would also 
provide space for the following new DCS programs which 
would also be staffed by the 50 DCS positions to be 
relocated from 170 Otis Street: 

• Teen Drop-In Center 

• One additional Child Welfare Unit 

Mr. Esbaugh advises that in early 1999 FCS hired 44.5 
FTE new employees which were authorized by the Board 
of Supervisors in FY 1998-99 (Files 98-1980 and 98-1981), 
bringing the total number of FCS employees to 390 FTEs. 
These 44.5 FTE new employees are currently located at 
170 Otis Street. The addition of these 44.5 FTE new 
employees has resulted in overcrowded space conditions 
at 170 Otis Street. As reported by DHS in their attached 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

32 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

memorandum, the 44 new employees "are located in 
hallways or areas not intended nor set up (no 
electrical/data/phone) as office space." In addition, other 
DHS programs which have been expanded recently, such 
as the CalWORKs program, are in need of more space at 
170 Otis Street, according to Mr. Esbaugh. 

According to Mr. Esbaugh, the proposed lease would allow 
FCS to relocate 50 employees and related programs from 
170 Otis Street to the proposed space at 225 Valencia 
Street in order alleviate overcrowded conditions at 170 
Otis Street and accommodate the additional FCS 
programs described above. The Attachment, provided by 
Mr. Esbaugh, describes in detail the overcrowded space 
conditions for the FCS Division at 170 Otis Street and 
explains why the proposed additional space at 225 
Valencia Street is necessary. 

Comments: 1. DHS reports that, in addition to relieving the 

overcrowded conditions at 170 Otis Street, the space 
provided under the proposed lease at Valencia Street 
would allow FCS to establish, with the same 50 
employees who would move there from 170 Otis Street, a 
new Teen Drop-In Center, consisting of approximately 
500 square feet, and an additional Child Welfare Unit, 
consisting of 750 square feet of the 12,750 square feet. In 
addition, the Visitation Room, which would be relocated 
from 170 Otis Street where it currently occupies 2,500 
square feet, would occupy 1,000 square feet in the 
Valencia Street location. According to DHS, the Foster 
Parent Resource Room which currently occupies 100 
square feet 170 Otis Street would occupy 100 square feet 
in the Valencia Street location. In total, the new Teen 
Drop-In Center, new Child Welfare Unit, relocated 
Visitation Room and relocated Foster Parent Resource 
Room will occupy 2,350 square feet. 

In addition to the 2,350 square feet of space described 
above, approximately 4,000 square feet of the proposed 
total of 12,750 square feet would by occupied by the 50 
FCS employees, or an average of 80 square feet each, 
according to Mr. Espaugh. Mr. Espaugh advises that 
DPH is unable to provide an estimate of the amount of 
space these 50 employees currently occupy at 170 Otis 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

33 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



Street because they are in locations spread throughout 
the building. Mr. Espaugh states that the remaining 
6,400 square feet of the total 12,750 square feet would be 
occupied by common areas including bathrooms, kitchen, 
conference rooms, and hallways. 

2. Ms. Claudine Venegas of the Department of Real 
Estate advises that the Lessor will pay for the leasehold 
improvements at an estimated cost of $200,000. Such 
improvements include building out office space, internal 
walls, electricity, heating and Americans with Disabilities 
Act improvements. These leasehold improvements are 
expected to be completed within approximately 60 days 
after approval of the proposed resolution, according to Ms. 
Venegas. 

3. According to Ms. Venegas, the proposed rent represents 
fair market value. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

34 



RPR-30-1999 14:51 



City and County of San Francisco 



Attachment 
Page 1 of 2 



Department of Human Services 




Will Ughtbourne 

i Executive Director 

Deputy Directors 

Bill Bettencourt 

Jim Buick 

Sally Kipper 



April 30, 1999 

To: Monique DeJong 

From: Jan Esbauob^Vv 

Subject Lease of 225Valen 



Family and Children's Services (FCS) occupies four floors at the Department of Human 
Services Building at 170 Otis Street. DHS currently makes bond payments on this 
building. FCS has a total staff of 390 FTE positions. This includes 44 nev/ positions 
added as a result of addition funding in the States 98/99 Budget and authorized by the 
Board of Supervisors in FY 98/99. These 44 new employees are currently housed at 
170 Otis street and are either sharing desk space with other staff or are located in 
hallways or areas not intended nor set up (no electrical/data/phone) as office space. 
This was necessary because of the length of time needed to find additional space. 

FCS is proposing to relocate a total of 50 staff from 170 to the proposed site at 225 
Valencia. These include two units serving youth ages 13 to 18 in Foster Care. (14 
Child Welfare Workers, two supervisors, and 4 support staff) 

The Independent Living Skills Program will relocate from 170 to this site (one 
supervisor and 4 staff) 

In meeting a new state mandate to provide services to youth aged 18 to 21 who have 
emancipated from Foster Care we are establishing a teen center at this site. This will 
occupy an area of approximately 500 sq ft. These youth will be service by th'3 ILS staff. 
There will also be a Youth Ombudsperson as well as the Department Ombucls persons 
at this location. 

Our intent is to also relocate the Visiting Room from 170 Otis to Valencia Street. The 
visiting room is staffed by 1 supervisor and 5 social workers and one suppo 1 staff that 
provide supervision during visits by parent with their children who have been removed 
by Juvenile Court action. The visiting room will be in operation from 8 am lo 8 pm six 
days a week to facilitate parents who are employed or in treatment and to aid in 



(415) 557-6000 



P.O. Box 7988 



San Francisco, California 94120 



35 



flPR-30-1999 14:51 p 03 

Attachment 
Page 2 of 2 



visitation. Currently the visiting room occupies 2500 square feet and a: the new 
location will be approximately 1000 sq ft.. There is also a Foster Parent Resource 
Room that assists in the recruitment and retention of Foster Parents. 



The Foster Home Licensing Unit which recruits and licenses Foster Homss in San 
Francisco will be relocated to this facility. This consists of a Supervisor 8 Child 
Welfare Workers and 2 support staff. There will also be a classroom/conference room 
area to facilitate state mandated training for foster parents. 

The remainder of the space is common usage consisting of an additional conference 
room , reception area, etc/ 



TOTAL P. 23 

36 



Memo to Finance Committee 

May 5, 1999 Finance and Labor Committee Meeting 



Item 12 - File 99-0726 

Department: 

Item: 



Amount: 
Source of Funds: 

Budget: 



Description: 



Emergency Communications Department (ECD) 

Ordinance appropriating $2,773,766 of the proceeds and 
interest earnings of San Francisco Finance Corporation 
Lease Revenue Bonds, for the purchase of Motorola 
mobile and desktop radio units and accessories, the 
installation of a fiber optic metropolitan area network, 
and 800 megahertz communications equipment for the 
Citywide Emergency Radio System Project. 

$2,773,766 

San Francisco Finance Corporation Lease Revenue Bond 
Proceeds, Series 1999-1 ($2,523,766) and San Francisco 
Finance Corporation Lease Revenue Bond Interest 
Earnings, Series 1998-1 ($250,000). 

A summary budget for this request of $2,773,766 is as 
follows: 



Phase II Expenses: 
Metropolitan Area Network 
262 Motorola Portable and Mobile 

Radio Units 
Subtotal 

Phase I Expenses 

Total 



$1,807,000 



716.766 

2,523,766 

250.000 

$2,773,766 



The Attachment to this report, provided by Ms. Lisa 
Marie Harris of the ECD, contains a description of this 
budget request for Phase II costs of $2,523,766. The 
Phase I expenses of $250,000 is a previously anticipated 
funding source towards the total estimated construction 
costs for Phase I of $28,485,593. 

In November of 1993, voters approved the issuance of $50 
million in San Francisco Finance Corporation Lease 
Revenue Bonds to finance the acquisition, construction 
and installation of an 800 Megahertz Radio System, now 
called the Citywide Emergency Radio System Project 
(Project). 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

37 



Memo to Finance Committee 

May 5, 1999 Finance and Labor Committee Meeting 



It is expected that the Project, which has been previously 
authorized by the Board of Supervisors, will provide 
uninterrupted, highly reliable communication abilities 
which will allow the Police, Fire, Paramedics and other 
City agencies, including the Water Department, Sheriffs 
Department, Department of Parking and Traffic, the 
Recreation and Parks Department, the Mayor's Office of 
Emergency Services and the Department of 
Telecommunications and Information Services, to provide 
enhanced delivery of emergency services in the event of 
an emergency or natural disaster. According to Ms. 
Harris, the purchase and construction of certain facilities 
and equipment, such as antenna towers, microwave 
transmitters, fiber optic cabling, and hand-held radios, to 
be funded by the issuance of these subject bonds are 
considered necessary to make the 911 Combined 
Emergency Communications Center operational. 

Construction and financing of the Project has been 
divided into two phases. Phase I consists of the design 
and construction of the transmission sites for the system. 
Phase II consists of design and construction of the fiber 
optic network that links the transmission sites and 
acquisition and installation of the portable and mobile 
radios. 

In January of 1998 the City issued the San Francisco 
Finance Corporation Lease Revenue Bonds, Series 1998-1, 
in the amount of $31,250,000, out of the total amount of 
$50,000,000 authorized by the voters, to finance Phase I 
of the Project. The proceeds of the Series 1998-1 Bonds 
were appropriated for construction of Phase I of the 
Project. The amount appropriated for construction was 
$27,783,037, with the $3,466,963 balance of the Series 
1998-1 bond funds appropriated for the cost of the bond 
issuance and the debt service reserve account. 

The financing plan for Phase I of the Project anticipated 
the future availability of interest earnings in the amount 
of $702,556. Since the original Phase I appropriation was 
approved, unexpended Series 1998-1 bond funds have 
earned interest income in the amount of $250,000. Such 
interest earnings can only be used for the Project. 
Therefore, this proposed supplemental appropriation 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

38 



Memo to Finance Committee 

May 5, 1999 Finance and Labor Committee Meeting 

would appropriate such interest earnings as a previously 
anticipated revenue source towards the total project 
construction costs of $28,485,593. The new balance of 
funds appropriated for construction therefore would 
increase by $250,000, from $27,783,037 to $28,033,037. 

In January of 1999, the City issued the San Francisco 
Finance Corporation Lease Revenue Bonds, Series 1999-1, 
in the amount of $18,665,000, out of the $18,750,000 
remaining amount ($50,000,000 less Series 1998-1 
amount of S3 1,250,000) authorized by the voters, to 
finance Phase II of the Project. $13,808,365 of the 
proceeds of the Series 1999-1 Bonds have already been 
appropriated as part of ECD's Fiscal Year 1998-1999 
Budget. Of this $13,808,365 appropriation, $2,311,068 
was for bond issuance costs and the debt service reserve 
account, and $11,497,297 was appropriated for Phase II of 
the Project. This supplemental appropriation of 
$2,523,766 would therefore increase total funding for 
Phase II of the Project from $11,497,297 to $14,021,063. 

As shown in the Attachment to this report, the proposed 
ordinance would appropriate $2,523,766 from the 
proceeds of the Series 1999-1 Bonds for: (a) the 
installation of a fiber optic cable network (referred to as 
the Metropolitan Area Network) to interconnect six sites, 
the main antenna site on Twin Peaks, the 911 Combined 
Emergency Communications Center and downtown 
antenna sites at City Hall, the Hall of Justice, Fire 
Department Headquarters and the Department of 
Telecommunications and Information Services computer 
facility ($1,507,000); (b) telephone termination equipment 
($250,050); (c) networking management hardware and 
software ($49,950); and, (d) the purchase of 262 Motorola 
mobile and desktop radio units and accessories, related 
programming, installation, testing and user training at an 
average unit price of $2,735 per radio ($716,766). 

Comments: 1. The title of the proposed ordinance incorrectly 

identifies the source of the funds to be appropriated as 
"Citywide Communication Series 1993 Bond Proceeds." 
According to Ms. Harris, $2,523,766 is proposed to be 
appropriated from the proceeds of the Series 1999-1 Bonds 
and $250,000 is proposed to be appropriated from interest 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

39 



Memo to Finance Committee 

May 5, 1999 Finance and Labor Committee Meeting 

earnings on the proceeds of the Series 1998-1 Bonds, not 
Series 1993 Bond proceeds. The ordinance should 
therefore be amended to indicate the correct source of 
funds. 

2. The contract for design and construction of the Project 
was awarded by competitive bid to Motorola. 

3. Design and construction of six of the transmission 
sites included in Phase I has been completed. 
Construction of additional faculties to improve City-wide 
radio coverage has begun, as has installation of radio 
equipment into Police and Fire Department vehicles. 
Design and construction of the fiber optic network has not 
yet begun. The Citywide Emergency Radio System 
Project is scheduled to be completed by March of 2000. 

Recommendation: 1. Amend the title of the proposed supplemental 

appropriation ordinance to substitute "Series 1998-1 Bond 
Proceeds and Series 1999-1 Bond Proceeds" for "Series 
1993 Bond Proceeds". 

2. Approve the proposed ordinance as amended. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

40 



Attachment 



Attachment I 



800 MHz Phase II Ccsis 



Fiber Optic Cabie for 
Six Proposed Sites: 

E-911 CECC, 1011 Turk Street 

City Hall, 1 Dr. Gocdlett Place 

Hail of Justice, 850 Bryant 

Fire Headquarters, 2nd and Townsend St 

DTIS Computer, 1 Market Plaza 

Twin Peaks City Site 


$ 1,507,000 


Temination Equipment for Six Sites Above: 
Sonnet Equipment ( for 6 sites) 
Networking Management hardware/software 


250,050 
49,950 


Motorola Portable and Mobile Radios 
induces intallaticn, software, decking stations 
Quantity: 262 


716,766 


Total S 2,523,765 



Source : E-rnerger.cy Communications 
Department 



41 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

Item 13 - File 99-0762 



Department: 



Item: 



Location: 

Purpose of 
License Agreement: 



Lessor: 

Lessee: 

No. of Sq. Ft.: 

Cost Per Month: 

Annual Cost: 

Increase Over Prior 
License Agreement: 

Description: 



Real Estate Department (RED) 
Municipal Railway (Muni) 

Resolution authorizing a retroactive roof equipment license 
extension agreement for 555 California Street for the 
Municipal Railway. 

555 California Street, downtown San Francisco 



To provide space for two radio antennas and transmitters 
and all associated wiring and equipment to be used for 
radio communication to support the San Francisco 
Municipal Railway 

555 California Street Partners 

City and County of San Francisco for Municipal Railway 

72 square feet 

$4,000 

$48,000 

$36,000 annually (300%) 

The subject resolution would authorize the renewal of a 
Roof Equipment License Agreement between Muni and 555 
California Street Partners, owners of the office building 
located at 555 California Street. The leased area would be 
used to provide space for two radio antennas and 
transmitters and all associated wiring and equipment for 
radio communications in support of Muni operations. 
According to Mr. Charles Lewis of Muni, the subject radio 
equipment would provide the necessary infrastructure to 
enable radio communications between Muni dispatchers 
and transit operators in the downtown area from Muni's 
central control station located at 131 Lenox Way. Mr. 
Lewis reports that Muni has occupied the subject space 
under a license agreement since 1986. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

42 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



Term of Lease: Three years, retroactive to November 1, 1998 to October 31, 

2001. 



Source of Funds: 



Comments: 



For FY 1998-99, Muni would fund the license agreement 
with previously appropriated surplus funds. For FY 1999- 
2000 and FY 2000-2001, Muni would fund the lease from 
Muni's annual operating budget. 

1. According to Mr. Larry Jacobson of the Real Estate 
Department, this proposed resolution, which requires a 
retroactive clause to November 1, 1998, was not submitted 
to the Board of Supervisors at an earlier date because (1) 
an initial proposal was not received from 555 California 
Street Partners until January 1999, and (2) the Real 
Estate Department entered into a lengthy negotiation with 
555 California Streets Partners in an attempt to minimize 
the proposed rate increase for the subject site. 

2. In accordance with the proposed license agreement, the 
new monthly rate for the subject space would be $4,000 
which is $3,000 or 300 percent more than the $1,000 
monthly rate under the previous license agreement which 
expired on October 31, 1998. According to Mr. Jacobson, 
the proposed $4,000 monthly rate represents fair market 
value due to the rapidly growing demand for similar space 
for both public and private sector radio operations. Mr. 
Jacobson reports that the City occupies similar rooftop 
space at One Market Plaza at a monthly rate of $4,000. the 
same rate as provided for in the subject license agreement. 

3. According to Mr. Larry Garde with the Department of 
Telecommunications and Information Services, the office 
building located at 555 California is presently the only 
available building tall enough to allow the continued 
successful operation of Muni's radio communications in the 
downtown area. Mr. Garde explains that no other available 
site would provide adequate clearance from physical 
obstructions (i.e., other buildings) that would hamper the 
necessary radio communications. 

4. According to Mr. Garde, Muni anticipates that it will 
consolidate space for Muni's downtown radio 
communications needs with the City's new 800 Megahertz 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

43 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

Radio System and that the proposed subject licensed space 
may not be required after that time. Mr. Garde explains 
that the subject radio equipment may be moved to the 
building located at One Market Plaza where equipment 
related to the City's new 800 Megahertz Radio System is 
now being installed. Mr. Garde further explained that the 
subject radio equipment cannot be moved to the One 
Market Plaza location until the City's Department of 
Telecommunications and Information Services has 
completed engineering tests to ensure that the co-location 
of the two communication systems will not disrupt 
communication services. Mr. Garde anticipates that these 
engineering tests will be completed by February 2000 and 
that the subject equipment may be re-located to One 
Market Plaza at that time. . The proposed license 
agreement has an ending date of October 31, 2001 subject 
to a termination provision with 180 days prior written 
notice to the lessor. According to Mr. Jacobson, the Real 
Estate Department negotiated a three-year license 
agreement (with a termination provision) in order to ensure 
that the monthly rate at the subject site does not exceed 
$4,000 in the event that aforementioned engineering 
studies indicate that relocating the subject equipment to 
One Market Plaza would be infeasible. 

Recommendation: Approval of the proposed resolution is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

44 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

Item 14 - File 99-0732 



Department: Municipal Railway (Muni) 

Item: Release of reserved funds in the amount of $423,862 to fund 

electrical improvements related to health and safety in the 
Metro tunnels. 



Amount: 
Source of Funds: 
Description: 



$432,862 

Federal Surface Transportation Funds 

In October of 1992, the Board of Supervisors approved a 
resolution authorizing the Pub He Utilities Commission 
(PUC) to apply for, accept and expend $1.2 million of Federal 
Surface Transportation Funds and $300,000 of local and 
regional matching funds, for a total of $1.5 million to provide 
financing for the design and rehabilitation of MUNI's fixed 
facilities (Resolution No. 907-92, File 94-92-8). The 
modifications to MUNI's fixed facilities include alterations to 
subway, surface and maintenance facilities to accommodate 
larger light rail vehicles (LRVs) than were currently in 
service in the Muni fixed rail system. 

Of the total $1.5 million authorized, $1,273,862 was placed 
on reserve for capital improvement projects, pending the 
selection of contractors and submission of cost details. 
According to Mr. Jerry Levine of Muni, since the initial 
reserve, the Board of Supervisors has approved the release of 
$805,000 of the total original reserve of $1,273,862, leaving a 
balance remaining on reserve of $468,862. 

This subject project represents the fourth in a series of four 
capital projects to rehabilitate existing MUNI Metro fixed 
facilities and is listed in the table below as the System-Wide 
Fixed Facility Rehab project. The four projects include: 



Project Title 



Total Funds 



Metro East Facility Project $1,500,000 

Eureka Portal Reconstruction 1,751.800 
Fixed Facility Rehab (including 

Cable Car Hatch Cover Installation) 1,500,000 

System-Wide Fixed Facility Rehab (subject item) 1.500.000 

TOTAL $6,251,800 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

45 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

Comment: Mr. Levine has requested that this item be continued until 

the May 12, 1999 Finance and Labor Committee meeting in 
order to provide Muni with additional time to submit cost 
information as requested by the Budget Analyst. 

Recommendation: Continue the proposed resolution to the May 12, 1999 
Finance and Labor Committee Meeting, as requested by 
Muni. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

46 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

Item 15 - File 99-0801 



Department: 



Item: 



Department of Administrative Services 
Department of Children, Youth and Their Families 

Request for release of $318,838 to complete the 
construction, equipment and furnishings for the 
City Hall Child Care Center. 



Amount: 


$318,838 




Source of Funds: 


General Fund 




Budget: 


Exterior Playground 


$ 158,350 




Interior Improvements 


90,000 




Fixtures, Furnishings & Equip 


55.305 




Subtotal 


$303,655 




5 Percent Contingency 


15.183 




Total 


$318,838 



Description: 



Comments: 



The proposed request would release $318,838 of the 
total of $350,000 which was placed on reserve in 
the FY 1998-99 Department of Administrative 
Services budget for a Child Care Center in City 
Hall. According to Mr. Steve Nelson of the 
Department of Administrative Services, these 
funds were placed on reserve for the City Hall 
Child Care Center because, at the time of the FY 
1998-99 budget deliberations, the Department 
could not identify (a) the specific childcare facility 
requirements and (b) the associated costs that 
would be necessary to complete such a facility. 

The new Child Care Center would consist of 
approximately 3,500 square feet located in the 
northwest quadrant of the basement of City Hall 
with the main entrance and access from McAllister 
Street. In addition, the Child Care Center would 
have two outdoor play areas on the McAllister 
Street side of City Hall, comprising an additional 
approximately 1,800 square feet. 

1. Mr. Nelson reports that he does not have a 
separate breakdown of the costs to construct the 
basic space for the Child Care Center, which was 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

47 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

completed as part of the overall City Hall 
renovation project. However, Mr. Nelson reports 
that in the final plan there will be two separate 
children's bathrooms and one adult bathroom as 
well as two food preparation areas in the proposed 
space, although the children will be required to 
bring their own lunches and Marin Day School will 
provide morning and afternoon snacks. Mr. Nelson 
notes that the construction of this space has 
already included one bathroom for children, one 
bathroom for adults, three undercounter 
refrigerators, one full-size refrigerator, one washer 
and dryer and two dishwashers. Mr. Nelson notes 
that the requested $318,838 would complete the 
necessary renovations to make the space useable 
for a Child Care Center. 

2. As noted above, the City Hall Child Care Center 
would have two exterior play areas, one for 
toddlers, at a cost of $80,260, and one for infants, 
at a cost of $78,090, for a total cost of $158,350. The 
Budget Analyst questioned why the City Hall Child 
Care Center is proposing to construct these two 
exterior play areas, when over the past five years, 
the City has spent over $600,000 of Open Space 
Funds to construct two extensive play areas, 
specifically geared toward young children in the 
Civic Center Plaza, directly across the street from 
City Hall. Ms. Karen Hong, of the Department of 
Administrative Services responded that (1) the 
Civic Center Plaza facilities are currently 
overcrowded since other childcare facilities in the 
Tenderloin use these play areas and 2) Marin Day 
Schools would need a waiver of State licensing 
requirements to be able to use these play areas. 
Furthermore, Ms. Hong notes that Marin Day 
Schools has agreed to allow neighborhood 
Tenderloin childcare facilities to use the proposed 
two new City Hall exterior play areas. 

In addition, the exterior play areas are proposed to 
have wrought iron fencing surrounding the area, at 
a total cost of $34,688. An alternative chain link 
fence, at a total cost of $16,955, or less than half 
the cost of the wrought iron fence, was rejected 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

48 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



because according to Mr. Nelson, it was not 
architecturally consistent with the rest of City 
Hall, and was determined to be less safe for the 
children. The actual play equipment for the 
children in the play areas is anticipated to cost 
$25,864, including a playstructure for $8,752 and a 
play maze for $7,427. 

3. Furthermore, the budget details reviewed by the 
Budget Analyst's Office reflected toy and children's 
furniture costs that appear excessive. For example, 
$190 for a set of five small trucks, $610 for a set of 
nursery mini hollow blocks, $710 for a set of half 
school unit blocks, $185 for Bouncy Birds, 32 small 
chairs for the children for $2,036, or an average 
cost of $64 per chair and $507 for aquariums. In 
response, Ms. Hong reports that the childcare 
facility furnishings will be consistent with the high 
quality of the other furnishings in City Hall, and 
that the Department of Administrative Services 
and Marin Day School agreed to the need to 
purchase only high quality toys and equipment 
that would last for a long time and not require 
replacement in the near future. 

4. The interior construction cost estimate of 
$90,000 includes a contingency of approximately 20 
percent. Ms. Sherri Williams of the City Architect's 
Office reports that this 20 percent contingency will 
be needed for additional Americans With Disability 
Act improvements (ADA) and fire safety 
renovations. Ms. Williams notes that this interior 
work will actually be completed by the Bureau of 
Building Repair (BBR) and a contractor, ISEC, that 
specializes in interior woodwork and equipment, 
who has been working on the City Hall 
renovations. The Budget Analyst also notes that 
the budget for the two exterior play areas includes 
a contingency factor of an unquantified amount. 
The Budget Analyst therefore questions why the 
subject request includes an additional five percent 
contingency of $15,183, on top of these two other 
construction contingencies. The Budget Analyst 
therefore recommends that this additional five 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

49 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

percent contingency be eliminated for a savings of 
$15,183. 

5. Mr. Nelson reports that the proposed Child Care 
Center will be able to accommodate a total of 49 
children, based on the following breakdown by 
ages: 

Infant & Toddlers (2 mos.- 30 mos.) 21 

Young Preschool (30 mos. - 3 V= yrs.) 12 

Preschool (3 V: yrs. - 5 H yrs.) 16 

Total 49 

Mr. Nelson notes that it is likely that all 49 
available spots for children will not be filled 
immediately. However, based on a total requested 
cost of $318,838, and assuming that all 49 spots are 
eventually filled, it results in an average capital 
expenditure of $6,507 per child. 

6. Mr. Nelson reports that initially the City did not 
receive any responses to the City Hall Child Care 
Center Request For Proposal (RFP), until the date 
was extended and more requests were issued. 
Ultimately, the City only received two responses to 
their RFP, one from Florence Crittenden Services 
and one from Marin Day Schools. Mr. Nelson notes 
that Florence Crittenden Services specializes in at- 
risk youth, and was not determined to have 
significant experience with infant day care services. 
Marin Day Schools was selected as the operator of 
the proposed City Hall Child Care Center, based on 
a review panel process consisting of representatives 
from the Department of Children, Youth and Their 
Families, the Department of Administrative 
Services, Department of Human Services and the 
Mayor's Office, according to Mr. Nelson. 

7. Under a pending three-year contract between the 
City and Marin Day Schools, which would extend 
from July 1, 1999 through June 30, 2002, Marin 
Day Schools would pay the City $1 per year for the 
proposed space and the City would be responsible 
for renovations of the facility of up to $350,000. and 
for providing all utilities, janitorial and 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

50 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 



maintenance services. Under this agreement, 
Marin Day Schools would collect all of the revenues 
and pay all of the operating expenses. Mr. Nelson 
notes that the Department of Children, Youth and 
Their Families will be entering into this three-year 
operating agreement with Marin Day Schools, to be 
effective July 1, 1999, which would not be subject 
to the Board of Supervisors approval. However, Mr. 
Nelson reports that a resolution authorizing the 
City to enter into a lease with Marin Day Schools 
for Marin to pay the City $1 per year is currently 
being prepared and will be subject to the approval 
of the Board of Supervisors. 

8. As shown in Attachment 1, provided by Marin 
Day Schools, the estimated operating costs for this 
facility is $385,000 the first year of operation, 
increasing to $422,000 by the third year of 
operation. Approximately 97 percent of the 
operating costs, or $375,000 of the total $385,000 
operating costs during the first year is anticipated 
to be financed from tuition income. However, the 
tuition income includes an annual $50,000 General 
Fund subsidy (See Comment No. 10). The balance 
of approximately three percent of the operating 
costs will be financed from other revenues and 
donations realized by Marin Day Schools. 

9. Attachment 2, provided by Marin Day Schools 
identifies the monthly tuition rates ranging from 
$285 per child for two mornings for the preschool 
children to $1,045 per child for five full days for the 
infant/toddler program. However, since most of the 
people using the facility are Likely to be full-time 
City employees, it is likely that five full days of 
care would be needed for their children. 

Given the need for moderate child care costs for 
City employees, the Budget Analyst questions the 
high monthly costs for full-time care of between 
$810 for preschool students to $1,045 for 
infant/toddlers. Additionally, Marin Day Schools 
charges a $100 annual activity fee and a $50 
student registration fee. Mr. Nelson reports that 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

51 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

the proposed tuition rates are the same rates that 
Marin Day Schools charges at its other facilities. 

10. According to Mr. Nelson, beginning in FY 1999- 
2000, the City, through the Department of 
Administrative Services, will contribute an annual 
General Fund subsidy of $50,000 to the proposed 
Child Care Center to provide tuition scholarships 
and subsidies for low-income families using the 
City Hall Child Care Center. Mr. Nelson notes that 
the Department budgeted $175,000 for six months 
of tuition subsidies in FY 1998-99 for the City Hall 
Child Care Center, but under the proposed plan, 
this would be reduced to the currently projected 
$50,000 annually. Mr. Nelson adds that the City's 
$50,000 annual contribution is included as part of 
the tuition income line item in Attachment 1. 

11. Mr. Nelson reports that there is likely to be 
more requests to place children in the City hall 
Child Care Center than the 49 available slots. 
Therefore, Ms. Hong notes that a priority system 
has been developed by the City Hall Policy 
Committee, which is comprised of representatives 
from the Controller's Office, Mayor's Office, 
Treasurer's Office, Department of Administrative 
Services and the City Architect. Under this priority 
system, first priority will be given to employees 
who work in City Hall, including City employees 
and non-City employees who work in the City Store 
and cafes. Second priority will be given to City 
employees who work in the Civic Center area, and 
the third priority will be given to other City 
employees. In addition, Mr. Nelson notes that of 
the total 49 available childcare slots, five slots will 
be set aside for children from the adjacent 
Tenderloin neighborhood. However, in all cases, 
Mr. Nelson reports that the actual selection of child 
care applicants will be made by the Marin Day 
Schools. 

12. Although City Hall opened in early January of 
1999, the City Hall Child Care Center is not 
anticipated to open until July of 1999, or six 
months later. Mr. Nelson reports that this delay 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

52 



Memo to Finance and Labor Committee 

May 5, 1999 Finance and Labor Committee Meeting 

occurred due to safety concerns, since all of the 
construction work was not completed in City Hall 
when it opened in January of 1999, and due to the 
operational difficulty for Marin Day Schools to 
begin a Child Care Center in mid-year, rather than 
after the completion of the regular school year. 

13. The Budget Analyst raises the following 
concerns about the requested release of reserve: (1) 
there were only two responders to the City's RFP to 
provide childcare services in City Hall, and only 
one of the responders, Marin Day Schools, had 
extensive experience in providing both 
infant/toddler and preschool services, (2) the 
facility has two food preparation areas, with a 
refrigerator in each of the two food preparation 
areas as well as two additional refrigerators in the 
other two rooms, yet the children will be 
responsible for bringing their own lunches to 
school, and Marin Day will just be providing snacks 
for the children, (3) two exterior play areas are 
proposed, at a total cost of $158,350, although 
directly across the street in the Civic Center Plaza, 
the City recently constructed extensive play areas 
for small children, at a cost of over $600,000 with 
Open Space funds, (4) expensive furnishings, 
equipment and toys are being selected for this 
facility at a total cost of $81,169, (5) an additional 
contingency of five percent is provided under this 
subject request for all of the proposed expenditures, 
at a cost of $15,183, which is on top of two other 
contingencies previously allocated for the interior 
and exterior construction projects, (6) the costs to 
the participants of this child care program appear 
high, with monthly costs for full-time child care 
ranging between $810 to $1,045 per month per 
child, as well as an additional annual activity fee of 
$100 and an additional $50 student registration 
fee. 

Recommendation: At a minimum, reduce the request by $15,183 to 

eliminate the additional five percent contingency, 
as referenced in Comment Nos. 4 and 13 above. 
Approval of the remaining request of $303,655 is a 
policy matter for the Board of Supervisors. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

53 




J999F ^ :S1 



CC^r HLiniN. icw^ 



Q&lS 




Attachment 1 



F^ 



SAN FRANCISCO CITY HALL CHILD CARE CENTER </ ^ h^l 

PROPOSED OPERATING BUDGETS **f r 



fr 



INCOME ^ ^ YEAR ONE 

Tuition \* (. 
Registration ^0 
Activity Fees -4 U 

Donations iTK 1 (4,000. 1 



^ 



YEAR TWO YEAR THREE YEAR FOUR 




290,000.00 
3400.00 
2,500.00 
4.000.00 



410.000.CO 
4.000.00 
3,000.00 
5,000.00 



<30.000.00 
4.000.00 
3,000.00 
5,000.00 



TOTAL INCOME 


3S5.000.00 


400,000.00 


422,000.00 


442000.CO 


EXPENSE 










Salaries 


(230000.00) 


290,000.00 


305,000.00 


317.0O0.C0 


Payroll Taxes 


24JJB&U0 


25,100.00 


27,000.00 


28.000.00 


Healin Insurance 


sisoaoo 


6,300.00 


6,500.00 


7.000.00 


Wcuxers Comp. 


2.000.00 


3.100.00 


2,500.00 


3,600.00 


Admin/Management 


47.soaoo 


50,000.00 


52,500.00 


55,000.00 


Building & Grounds 


1.000.00 


1,000.00 


1,500.00 


3.00C.C0 


Equipment 


soaoo 


500.00 


1.000.00 


1,400.00 


Faculty Development 


1,500.00 


1.500.00 


1.500.00 


1,500.00 


Faculty Incentives 


1,200.00 


i.2oaoo 


1,200.00 


1.500.00 


Food 


2,800:00 


3,000.00 


3,000.00 


3.4C0.00 


InstructicnaJ Supply 


e.ooo.oo 


6.000.00 


6,500.00 


.7,000.00 


Insurance 


3,600.00 


3,700.00 


3,800.00 


4. 000. CO 


Maintenance Supply 


2,500.00 


2.600.00 


2700.00 


3,000.00 


OfTica Supply 


1.200.00 


1,200.00 


1,500.00 


1 ,500.00 


Petty Cash 


i.000.00 


1.000.00 


1.000.00 


1,000.00 


Printing & copying 


1,200.00 


1.200.00 


1,200.00 


1,50C.OO 


Special Events 


1, 800.00 


2,000.00 


2.000.00 


2.000.00 


Telephone 


600.00 


600.00 


ecaoo 


600.00 


TOTAL EXPENSE 


385,000.00 


40o.ooaoo 


422.000.00 


442,000.00 



54 




Attachment 2 



^ VPB ***** DAY SCHOOLS 
SANEBANC3SC0 COTHAlXCAMKrc 

September 1998 through Augiwisw 

* Scholarships and sliding scale fees J?*^ 3 ? 

=W scale fees are avails. p Iease see bdow 

SCK^Tittt-cc 



SCHEDULES 
PRESCHOOL 
Morning 

Afternoon 
Full 

IKFANT/TODDLER 
Morning 

-Afternoon 
Full 



HOURS 

7:30-12:30 
12:30-6:00 
7:30-6:00 



7:30-12:30 
12:30-6:00 
7 3 0-6:00 



JAYS PER WEEK 
2 3 s 

S225 S38S S525 

^ S385 S525 

5405 S575 J8 10 

S33S S480 $685 

5335 S480 $685 

5480 S705 S1045 



Covers Special Evenig 
Drop In chad Care 10 hrs 
Due in the Spring 



YEARLY FEES 

Transition and Preschool Only 

Yearly Activity Fee «., 

Drop In Daycare Card f 1 * 

Continuing Student Registration s 50 

PLEASE NOTE 

fc-ncial aid wheneveTT^bi??^ *"«*«»££ We or£' sc^Th ^ 
^ugh the school or bu^ ss ^T 003 ^ Sdl0,arefai P «^-^S^K-"S 
long as funds are aS^X £ ™ ?* rded 0n a ** «5 fe^t?* 
°r any other matt e^MOS 39^ Sn ? Wdc0TO to «* * « •n^ine/iSS ^ "■ 
Thank you. MDS 39 Dn ^ Street, San Francisco CA ^£g$g££ 

All tuitions are due on th « 

*y o« your prompt pa^Un^ =* Qu ^ cMd — » «** and we — , , 
charged for tuhion pX rfJlr^S? 'J?* ^Sements are made, , CO ^T?* ° 
checks returned bv^h. T^ ^ ** ° f the raon ^ A S20 Check rZ ,Jj? Uxt Fee " 
Please be^f r^" JPJJ- your coop«££ ^i^ fW "■ 
1,16 ^DXS.rxr^iundhQok for all polides and pro-^ °* ^ 



TOTAL P. 04 



55 



Memo to Finance Committee 

May 5, 1999 Finance and Labor Committee Meeting 

Item 16 - File 99-0424 



Item: Hearing on the fiscal impact to provide one year of paid 

maternity/paternity leave for employees of the City and 
County of San Francisco and an unspecified tax incentive 
amount for businesses that provide one year of paid 
maternity/paternity leave for its employees. 

Description: According the Office of the Sponsor, the subject hearing 

has been called to consider the fiscal impact of providing 
one year of paid maternity/paternity leave to City 
employees as well as tax incentives to businesses who 
provide similar maternity/paternity leave benefits to their 
employees. The Budget Analyst's estimated cost for each 
of these provisions is described below. 

Estimated Cost to Provide One Year Paid 
Maternitv/Paternitv Leave to Citv Employees 

The Office of the Sponsor provided the following 
additional details for use by the Budget Analyst in order 
to estimate the fiscal impact of this proposal. One year of 
paid leave would be granted for all City employees who 
are mothers or fathers of newborns as well as for 
employees who adopt a child under the age of 2 years. 
The Office of the Sponsor suggested two potential 
alternatives. Under one alternative, employees would be 
paid their full annual salary and benefits for the paid 
leave benefit and under the other alternative, employees 
would be paid 60 percent of their annual salaries and 
benefits for the paid leave benefit. 

In order to determine the number of children born to City 
employees and adoptions of children under the age of two 
years, we consulted the City's Health Services System. 
Based on the most recent data available, 613 children 
under the age of two years were added to the Health 
Services System in FY 1997-98. 

According to the Controller's Office, the average annual 
salary currently earned by a City employee is $48,334 
with an additional $10,633 in fringe benefits (22 percent) 
for a total of $58,967 per employee. Therefore, at an 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

56 



Memo to Finance Committee 

May 5, 1999 Finance and Labor Committee Meeting 



average annual salary and benefit cost of $58,967 for each 
employee and a total of 613 births and adoptions, the total 
cost to the City to provide one year of maternity/paternity 
leave at full salary and benefits would currently be 
$36,146,771 annually. If the maternity/paternity leave 
benefit paid employees 60 percent of their annual salary 
and benefits, the current cost would be $21,688,063 
annually. 

The estimates provided above do not take into account 
that children born to or adopted by City employees may 
not have been enrolled in the City's offered health plans 
and may instead have been enrolled under another health 
plan not offered by the City. Therefore, the estimate of 
613 births and adoptions by City employees in FY 1997-98 
may have underestimated the number of children born to 
or adopted by City employees and correspondingly may 
underestimate the number of such employees who may 
utilize the proposed one-year maternity/paternity leave 
benefit. 

In addition, the estimates provided do not include costs to 
the City to backfill positions, as needed, which would be 
temporarily vacated during an employee's maternity/ 
paternity leave. 



Estimated Reduced Revenues to the Citv if the Citv 
Were to Provide Tax Credits to Businesses Which 
Provide One Year Paid Maternitv/Paternitv Leave 
to Their Employees 

Firms doing business in San Francisco currently pay the 
City either a Payroll Tax or a Gross Receipts Tax, 
whichever results in the higher tax liability, if then- 
computed tax liability is $2,500 or more. If a business has 
a tax liability of under $2,500, the business qualifies 
under the Small Business tax exemption and pays no 
Payroll or Gross Receipts Taxes to the City. 

According to the Tax Collector's Office, approximately 88 
percent of firms doing business in San Francisco qualify 
for the Small Business tax exemption and therefore pay 
no Payroll or Gross Receipts Taxes to the City. The Tax 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

57 



Memo to Finance Committee 

May 5, 1999 Finance and Labor Committee Meeting 



Collector's Office advises that there are presently 7,731 
businesses that have either a Payroll Tax or Gross 
Receipts Tax liability of $2,500 or more annually and 
therefore are required to pay such taxes to the City. 
According to the Tax Collector's Office, such businesses 
employ an estimated 311,937 employees in San Francisco. 
The Tax Collector's Office reports that an estimated 
53,727 businesses pay no Payroll or Gross Receipts Taxes 
to the City because their computed tax liability is less 
than $2,500. Such businesses employ an estimated 75,956 
employees in San Francisco. 

The Office of the Sponsor suggested a range of annual tax 
credits between $500 and $10,000 in order to estimate the 
fiscal impact of providing such tax benefits to businesses. 
It is unknown at this time as to the number of businesses 
which would provide one year of paid maternity /paternity 
leave to their employees on the basis that such businesses 
would receive a tax credit against their Payroll and Gross 
Receipts Taxes owed to the City. The table below shows 
the reduced annual tax revenues to the City which would 
result depending on the amount of the annual tax credit 
offered and the number of business which would receive 
the tax credit. 



Potential 










Percentage and 










Number of All 










Businesses With 










Payroll or Gross 










Receipts Taxes of 










$2,500 or More 










Which Would 










Receive a Tax 


Tax Credit 


Tax Credit 


Tax Credit 


Tax Credit 


Credit* 


of $500 


of $1,000 


of $5,000** 


of $10,000** 


1% (77) 


$38,500 


$77,000 


$385,000 


$770,000 


5% (387) 


$193,500 


$387,000 


$1,935,000 


$3,870,000 


10% (773) 


$386,500 


$773,000 


$3,865,000 


$7,730,000 


50% (3.866) 


$1,933,000 


$3,866,000 


$19,330,000 


S38.660.000 


100% (7.731) 


$3,865,500 


$7,731,000 


S3S.655.000 


S77. 310,000 



* Based on the number of businesses which had a FT 1997-98 Payroll or Gross Receipts Tax 

liability of $2,500 or more (7,731 businesses). 
** Actual reduction in annual tax revenues may be lower than shown in table as some 

businesses have tax liabilities which are less than the $5,000 or $10,000 tax credit and 

therefore would not receive the full tax credit. 
Note: According to the Tax Collector's Office, the total amount of actual Payroll and Gross 

Receipts Tax revenues collected in FY 1997-98 were $215,613,703. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

58 



Memo to Finance Committee 

May 5, 1999 Finance and Labor Committee Meeting 



As noted earlier, it is unknown at this time as to the 
number of businesses which would provide one year of 
paid maternity/paternity leave to their employees on the 
basis that such businesses would receive a tax credit 
against their Payroll and Gross Receipts Taxes owed to 
the City. However, as shown in the table above, if 
between one percent and 100 percent of the 7,731 
businesses which are liable for the payment of Payroll 
and Gross Receipts Taxes to the City were to receive an 
annual tax credit by providing paid maternity/paternity 
leave benefits to their employees, the range of reduced 
annual Payroll and Gross Receipts Tax revenues to the 
City would be as follows: 



cc: Supervisor Yee 

Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



Tax Credit Amount 
$500 
$1,000 
$5,000 
$10,000 



Range 

$38,500-$3,865,500 

$77,000-$7,731,000 

$385,000-$38,655,000 

$770,000-$77,310,000 



Harvey M. Rose 



/£- 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

59 




City and County of £an Francisco 

Meeting Minutes 

Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B. 

Goodlett Place 

San Francisco, CA 

94102-4689 



Wednesday, May 12, 1999 



10:00 AM 
Regular Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



UUUUMbNISDE|p-r 

JUN 1 6 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 



Meeting Convened 

The meeting convened at 10:10 a.m. 

CONSENT AGENDA 



All matters listed hereunder constitute a Consent Agenda, are considered to be routine and will be acted upon 
by a single roll call vote of the Committee. There will be no separate discussion of these items unless a 
member of the Committee so requests, in which event the matter shall be removed from the Consent Agenda 
and considered as a separate item. 

990776 [Emergency Repair, Sewers, Various Streets] 

Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate 
sewers on Keamy Street from Pacific Avenue to Washington Street, Columbus Avenue from Pacific Avenue 
to Jackson Street, and Jackson Street between Columbus Avenue to Montgomery Street - $430,057. (Public 
Utilities Commission) 

(Fiscal impact.) 

4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

RECOMMENDED... 



990777 [Emergency Repair, Jackson Street Brick Sewer] 

Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate 
bnck sewer on Jackson Street from Columbus Avenue to Keamy Street - $285,821. (Public Utilities 
Commission) 

(Fiscal impact.) 

4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

RECOMMENDED... 



City and County of San Francisco 



Printed at 5:50 PM on 5/13/V9 



Finance and Labor Committee 



Meeting Minutes 



May 12, 1999 



990778 [Emergency Repair, Pine Street Brick Sewer] 

Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate 
brick sewer on Pine Street from Montgomery Street to Sansome Street - S3 1 1,921. (Public Utilities 
Commission) 

(Fiscal impact.) 

4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

RECOMMENDED... 



990779 [Emergency Repair, 4th Street Brick Sewer] 

Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate 
brick sewer on 4th Street between Folsom Street and Howard Street - 5133,040. (Public Utilities Commission) 
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 
RECOMMENDED... 



990780 [Emergency Repair, Easement Sewers, Various Locations! 

Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate 

easement sewers bordered by Baltimore Way, Canyon Drive, Cordova Street, and Naylor Street - S68.429. 

(Public Utilities Commission) 

4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

RECOMMENDED... 



990781 [Emergency Repair, Broderick Street Sewer] 

Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate 
sewer on Broderick Street from Broadway to Vallejo Street - S77.650. (Public Utilities Commission) 
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 
RECOMMENDED... 



990782 [Emergency Repair. Davidson, Custer and Rankin Streets Sewerage System] 

Resolution approving the expenditure of funds for the emergency work to perform improvements to the 
hydraulically inadequate sewerage system in the Davidson. Custer and Rankin collection system - 
$1,834,838.80. (Public Utilities Commission) 

(Fiscal impact.) 

4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

RECOMMENDED... 

The foregoing items were acted upon by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



REGULAR AGENDA 



City and County of San Francisco 



Primed at 5:51 PM on 5/13/V9 



Finance and Labor Committee 



Meeting Minutes 



May 12, 1999 



990801 [Reserved Funds, Dept of Administrative Services] 
Supervisor Yee 

Hearing to consider release of reserved funds, Department of Administrative Services, (Fiscal Year 1998-1999 
Budget), in the amount of $350,000 to fund the City Hall Child Care Center. (Administrative Services 
Department) 

4/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

5/5/99, CONTINUED. Heard in Committee Speakers: Harvey Rose, Budget Analyst; Debra Alvarez, Mayor's Office of Children, 
Youth & Their Families; Supervisor Bierman, Supervisor Ammiano; Supervisor Yee; Steve Nelson, Department of Administrative 
Services; Joe Wilson, Coleman Advocates. Continued to May 12, 1999. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst. Amend to reduce the request by SI 5. 183 to 
eliminate the additional five percent contingency; release $303,655. 
APPROVED AND FILED. 



990880 [City Hall Child Care Facility License Agreement) 
Supervisors Teng, Bierman, Becerril 

Ordinance authorizing and approving a license agreement between the City and County of San Francisco, as 
licensor, and Marin Day Schools, as licensee, for a child care facility located on the ground floor level of City 
Hall and at an additional outdoor facility area. 
5/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst: Supervisor Teng; Deborah Alverez, Director, 
Mayor's Office ot Children, Youth and Their Families; Supervisor Ammiano; Steve Nelson, Director 
Administrative Services; Supervisor Bierman; Supervisor Yee. In Support: Sue Humbert-Rico, Child Care 
Advocate; Michele Rutherford, Department of Human Services; Verna Clark. Children's Council of San 
Francisco; Donna Cahill, Family Day Home. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



990881 [City Hall Child Care Center Outdoor Play Spacel 
Supervisors Teng, Bierman, Becerril 

Ordinance exempting the City Hall Child Care Center Outdoor Play Space from the competitive bidding 
requirements of the San Francisco Administrative Code. 
5/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Teng; Deborah Alverez, Director. 
Mayor's Office ot Children, Youth and Their Families; Supervisor Ammiano; Steve Nelson, Director 
Administrative Services; Supervisor Bierman; Supervisor Yee. In Support: Sue Humbert-Rico, Child Care 
Advocate; Michele Rutherford, Department of Human Services; Verna Clark, Children 's Council of San 
Francisco; Donna Cahill, Family Day Home. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 5:51 PM on 5/I3V9 



Finance and Labor Committee 



Meeting Minutes 



May 12, 1999 



990803 [Kezar Parking Lot] 
Supervisor Brown 

Resolution authoring and approving the management agreement by and between the City and County of San 
Francisco and U.S. Parking, Inc., for the "Kezar Parking Lot" located at Stanyan and Frederick Streets. 
4/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Joel Robinson. Acting Director. Recreation 
and Park; Supervisor Ammiano; Supervisor Yee. Opposed: Mark Gleason. Teamsters, Local 65. Continued 
to May 26, 1999. 

CONTINUED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



982026 [PUC Commercial Paper Issuance) 

Resolution approving the issuance of up to $150,000,000 aggregate principal amount outstanding at any one 
time of San Francisco Public Utilities Commission Commercial Paper Notes (Water Series) pursuant to 
Chapter 84 of Part I of the San Francisco Municipal Code in one or more series for the purpose of financing 
and refinancing certain capital improvements related to the Water Enterprise: approving the maximum interest 
rate thereon; and related matters. (Public Utilities Commission) 
12/2/98, RECEIVED AND ASSIGNED to Finance Committee 
12/16/98, CONTINUED TO CALL OF THE CHAIR. Speakers: None. 
1/25/99, TRANSFERRED to Finance and Labor Committee. 
4/22/99, SUBSTITUTED. 

4/22/99, ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Bill Barry, Assistant General Manager 
Finance, Public Utilities Commission; Supervisor Yee; Ed Harrington, Controller; Supervisor Ammiano. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



990784 [1999 Water Revenue Bonds Issuance) 

Resolution approving the issuance of not to exceed 5140,000,000 aggregate principal amount of San Francisco 
Water Revenue Bonds to be issued by the Public Utilities Commission of the City and County of San 
Francisco; affirming covenants contained in the indenture pursuant to which the Water Revenue Bonds are 
issued; authorizing the execution and delivery of a continuing disclosure certificate; and authorizing the taking 
of appropriate actions in connection therewith; and related matters. (Public Utilities Commission) 

(Fiscal impact.) 

4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Bill Barry, Assistant General Manager 
Finance, Public Utilities Commission; Supervisor Yee; Ed Harrington, Controller; Supervisor Ammiano. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 5.5/ ftV on S/13-V9 



Finance and Labor Committee 



Meeting Minutes 



May 12, 1999 



990045 [Pre-tax Treatment of Buy Backs) 
Supervisor Yaki 

Ordinance amending Administrative Code Section 16.29-5 and adding Section 16.61-4 concerning pre-tax 
treatment of buy backs. 

(Amends Section 16.29-5 and adds Section 16.61-4.) 

1/1 1/99, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 2/10/1999. 

1/25/99, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 2/10/1999. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Yaki; Claire Murphy. Executive 
Director. Retirement System. 
RECOMMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



990737 [Street Artists Fundi 
Supervisor Teng 

Ordinance amending Administrative Code by adding Section 10.1 17-123, establishing the Street Artists Fund 
as a special fund for the purpose of receiving all funds received by the San Francisco Arts Commission Street 
Artists Program pursuant to Article 24 of the San Francisco Police Code, and providing for interest 
accumulation therein. 

(Adds Section 10.117-123.) 

4/19/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers; Harvey Rose. Budget Analyst; Matthew Lonner, Aide to Supervisor Teng; 

Rich Newirth, Director, Art Commission; William Clark; Bob Clark; Ed Harrington, Controller; Supervisor 

Ammiano; Supervisor Yee. Amend on page 2. beginning on line 10; delete "in excess of $50,000, remaining in 

said fund at the close of any business day"; same title. 

AMENDED. 



RECOMMENDED AS AMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



990806 [Ground Lease, 1820 Post Street) 
Supervisor Brown 

Resolution approving the Redevelopment Agency of the City and County of San Francisco's lease of the land 
at Assessor's Block 684, Lot 45, commonly known as 1820 Post Street, to GGA 1820 Post, a California 
Limited Partnership, for 50 years for the purpose of preserving a housing development for very low and low 
income households. 

4/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Jim Morales, Director, Redevelopment 
Agency; Supervisor Yee; Supervisor Bierman; Supervisor Ammiano In Support: Gordon Chin. Executive 
Director, Chinatown Redevelopment Center; Gary Kitahata. Japanese Culture Center; Dolores Ivy, President. 
Golden Gate Apartment Association; James Perini. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at StSl PM on S/I3.V9 



Finance and Labor Committee 



Meeting Minutes 



May 12, 1999 



990443 [Resource Efficient City Building] 

Supervisors Ammiano, Bierman, Leno, Katz, Nevvsom, Yee 

Ordinance amending Administrative Code by adding Chapter 82, Sections 82.1 thru 82.7, establishing 
resource efficiency requirements for City-owned facilities and City leaseholds. 

(Adds Chapter 82, Sections 82.1 thru 82.7.) 

(Companion measure to File 990444.) 

3/8/99, ASSIGNED UNDER 30 DAY RULE to Public Health and Environment Committee, expires on 4/7/1999. 

4/28/99, TRANSFERRED to Finance and Labor Committee. President requests calendaring at the Finance and Labor Committee 

meeting of May 12, 1999. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Ammiano; Bill Burke, Archetec; 
Francesco Victor, Director. Department of Environment; Tara Lamont, Department of Archetecture; Cal 
Brumhead, Bureau of Energy conservation; Daniell Baurer, Bureau of Energy Conservation; David Assman; 
Solid Waste Management; Beryl Magilavy, Sustainable City; Kim Knoxs, San Francisco Water Department 
Amendment of the Whole making technical corrections. 

AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE. 
RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



990444 [Resource Efficient Pilot Projects] 

Supervisors Ammiano, Bierman, Katz, Leno, Nevvsom, Yee 

Ordinance amending Administrative Code by adding Section 82.8 establishing a pilot program to promote 
resource efficiency in construction of selected City-owned facilities and City leaseholds. 

(Adds Section 82.8.) 

(Companion measure to File 990443.) 

3/8/99, ASSIGNED UNDER 30 DAY RULE to Public Health and Environment Committee, expires on 4/7/1999. 

4/28/99, TRANSFERRED to Finance and Labor Committee. President requests calendaring at the Finance and Labor Committee of Mav 

12, 1999. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Ammiano; Bill Burke, Architect; 
Francesco Victor, Director, Department of Environment; Tara Lamont, Department of Archetecture; Cal 
Brumhead, Bureau of Energy conservation; Daniell Baurer, Bureau of Energy Conservation; David Assman; 
Solid Waste Management; Beryl Magilavy, Sustainable City; Kim Knoxs. San Francisco Water Department. 
Amendment of the Whole making technical corrections. 
AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE. 
RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



990732 [Reserved Funds, Municipal Railw ay | 

Hearing to consider release of reserved funds, Municipal Railway, (Federal Surface Transportation funds, File 
94-92-8, Resolution No. 906-92), in the amount of $423,862, to fund the MUNI Metro Tunnel modifications. 
(Public Transportation Commission) 

4/15/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 
5/5/99, CONTINUED. Continued to May 12, 1999 at the request of the Department. 

Heard in Committee. Speakers: Harvey Rose. Budget Analyst; Jerry Levine. Municipal Railway; Supervisor 
Yee. Amended to release $468,862. 
APPROVED AND FILED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 5:51 PM on 5/13/99 



Finance and Labor Committee 



Meeting Minutes 



May 12, 1999 



ADJOURNMENT 

The meeting adjourned at 1 :35 p.m 



City and County of San Francisco 



Printed at 5:5/ PM on 5/13/99 



Public Library, Gov't Information Ctr.. 5 th Fir. 
Attn: Susan Horn, Dept. 41 



I 



CITY AND COUNTY 




OF SAN FRANCISCO 



^BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 

FAX (415) 252-0461 



May 7, 1999 
TO: ^Finance and Labor Committee 

FROM: ^Budget Analyst 

SUBJECT: May 12, 1999 Finance and Labor Committee Meeting 
Item 1 - File No. 99-0776 



DOCUMENTS DEPT. 

MAY 1 7 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 



Department: 



Item: 



Amount: 
Source of Funds: 
Description: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 
Department of Parking and Traffic (DPT) 

Resolution approving tbe expenditure of funds for the 
emergency work to replace three structurally inadequate 
sewers on (1) Kearney Street between Pacific Avenue and 
Washington Street, (2) Columbus Avenue between Pacific 
Avenue and Jackson Street, and (3) Jackson Street 
between Columbus Avenue and Montgomery Street. 

$430,057 

FY 1998-99 PUC Repair and Replacement Fund 

The Public Utilities Commission (PUC) advises that on 
June 16, 1998, the sewers located on (1) Kearney Street 
between Pacific Avenue and Washington Street, (2) 
Columbus Avenue between Pacific Avenue and Jackson 
Street, and (3) Jackson Street between Columbus Avenue 
and Montgomery Street failed, and immediate 
replacement was required in order to protect the health. 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



Budget: 



welfare, and property of the citizens of San Francisco. 
The PUC declared an emergency on June 24, 1998. In 
accordance with Section 6.30 of the Administrative Code, 
the PUC initiated expedited contract procedures, and 
awarded a contract to Shaw Pipeline, Inc. which 
submitted the lowest quotation in the amount of 
$338,340. 

The total actual project cost was $430,057, including 
$365,407 in actual construction costs (or $27,067 more 
than the contract award amount, see Comment No. 2), 
$57,650 for DPW engineering and construction 
management costs and $7,000 for DPT traffic control 
costs. 



A summary of this budget is as follows: 

Construction Contract $365,407 

DPW Bureau of Engineering 32,650 

DPW Bureau of Construction Management 25,000 

DPT Traffic Control 7,000 



Total 



$430,057 



Comments: 



1. Invitations for proposals were faxed to 22 contractors 
on June 30, 1998. Three quotations were received by 
PUC from qualified contractors on July 2, 1998. PUC 
reports that Shaw Pipeline, Inc. submitted the lowest 
quotation and was awarded the contract in the amount of 
$338,340. The following table lists the contractors who 
submitted quotations, the amounts of the quotations, and 
the MBE/WBE/LBE status of the contractors: 



Contractor Quotation 

Shaw Pipeline, Inc. $338,340 

Darcy & Harty Construction $348,970 
J.M.B. Construction $414,009 



MBE/LBE Status 

LBE 

LBE 

MBE/LBE 



2. PUC reports that although the contract was awarded 
in the amount of $338,340, the final contract cost, after 
adjustment for actual quantities used during 
construction, was $365,407 or $27,067 more than the 
contract amount of $338,340. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



3. Mr. P.T. Law of the DPW advises that due to various 
delays in receiving expenditure documentation from the 
contractor, the PUC is requesting approval of this 
resolution approximately five months after the 
construction work was completed on December 14, 1998. 

4. The attached memorandum, provided by Mr. Law, 
explains why this sewer replacement work was considered 
an emergency, thereby not requiring the contract to be 
awarded under the City's formalized competitive bidding 
procedures, in view of the fact that an emergency was 
declared on June 24, 1998, but the work, except for sewer 
stabilization, did not begin until October 12, 1998, which 
is over three months from the time that DPW received 
contractor quotations on July 2, 1998. 

Recommendation: Approval of the proposed resolution is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



us/Ur-/yy 13:4c! bl-DFLI BOE HYDRAULICS ■» 415 252 0461 

City and County ol San Francisco 




Willie Lewis Brown, Jr., Mayor 

Mark A. Primeau, AIA, Director and City 

Architect 



Attachment 



9feVi e (415)354-8355 

{gyp* FAX {4 1 5) 554-6308 

Department of Public Works 

Bureau of Engineering 

, c „o^ Hydraulic Section 

1680 M^sion Strset, 2nC Root 

San Francisco. CA M103 

Norman Chan, Section Manager 



TO: 

FROM: 

SUBJECT: 



Gabe Cabrera 
Budget Analyst 



DATE: May 7, 1999 



P.T.Law/V/^ 

Bureau offcngineering, Hydraulic Section 

Contract No. CW.193E 

Kearny / Columbus /Jackson Ero.rgu.cy Sewer Replacement 



awarded to the contract^ it w Ta te^o™ S ST T ^_" " S °° n " the con *~ — 
completed. The emergency stabS on C Z£Z T T * peraUeat S4Wcr «^— I could be 
severely restneted. Aus PU C r^ZTt '"^'^ ""^ !o the pub,,c ' but *»• -»5 was 
procedures uthi,ng a ^^SCl^E3" h . , ^^ C ^ Bbc «" "^ e2«S 
project schedule, an emergency con J^sS^ead appro.mately d> more months to the 

s^=^^ - h • ~ — Ma 

begin construction on August 7 1998 X r ,I \ '" 8 O^™ 1 ^ Sha* Pipeline was scheduled to 
reasons for the mree-mouSy !n con^n "' *"* ^ ** **— Tn ~ — ^ P*«S 

^^A^e^ -**- Stree: ce^een 

to mimmize disruptions to the neighborhood land ^cZLLa " 8 " d ru f hed on August 2*. 1998. In order 
flowed m the area at any o^in^p^^ 

Construcuon Co. finished their work. Meanwhile^ht of r ^ n ° UCe t0 P™ ^ **« -'MB 

-section until they could move in £££ ^ 2g?cSSS ^ °° "* ^ ^ 

ZZttS ZZSZ Strr*? of f f ~ ° f «- — -— 

ssar •* ~ ™-- stLsaa: s km 

If you have any questions, please call me at 554-8347 or rhr »»^ -~ 

mc ai J04-e>»/ or the project engineer. Thomas Won, M 554-8275. 

cc: Thomas Won 

MO to-^AfO C.HAK 

CHft.;sTiNt£-oa^(^ 






Post-It* Fax Note 



customer sarvKg ana «™„ wus i/npro ^ 
Customer Service T 



To 



Pnone 



7671 g ^-/ -y rgr-- x 



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<3£^ &gZE£s£3gE&. 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



Item 2 - File No. 99-077' 
Department: 

Item: 

Amount: 
Source of Funds: 
Description: 



Budget: 



Comments: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving the expenditure of funds for the 
emergency work to replace a structurally inadequate 
sewer on Jackson Street between Columbus Avenue and 
Kearny Street. 

$285,821 

FY 1998-99 PUC Repair and Replacement Fund 

The Public Utilities Commission (PUC) advises that on 
June 16, 1998, the sewer located on Jackson Street 
between Columbus Avenue 'and Kearney Street failed, 
and immediate replacement was required in order to 
protect the health, welfare, and property of the citizens of 
San Francisco. The PUC declared an emergency on June 
16, 1998. In accordance with Section 6.30 of the 
Administrative Code, the PUC initiated expedited 
contract procedures, and awarded a contract to J.M.B. 
Construction, Inc. in the amount of $212,050. 

The total actual project cost was $285,821, including 
$237,271 in actual construction costs (or $25,221 more 
than the contract award amount, see Comment No. 2), 
$20,650 for DPW engineering costs and $27,900 for DPW 
construction management and inspection costs. 

A summary of this budget is as follows: 

Construction Contract $237,271 

DPW Bureau of Engineering 20,650 
DPW Bureau of Construction Management 

Construction Management 5,900 

Contract for Construction Inspection 22.000 

Total $285,821 

1. Invitations for proposals were faxed to 5 contractors on 
June 16, 1998. According to Mr. P.T. Law of DPW, 
because the emergency at Jackson Street required 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



immediate remedial action to ensure public safety, only 
these five contractors were contacted by PUC for their 
immediate availability and past construction experience. 
Two quotations were received by PUC from qualified 
contractors on June 17, 1998. PUC reports that Shaw 
Pipeline, Inc. submitted the lowest quotation in the 
amount of $201,125. However, according to Mr. Law, 
after application of business enterprise preferences in 
accordance with Chapter 12D of the San Francisco 
Administrative Code, J.M.B. Construction, Inc., which 
submitted the second lowest quotation, was awarded the 
contract in the amount of $212,050. A preference of 
approximately $21,205 or 10 percent was applied to the 
J.M.B. Construction, Inc. quotation, resulting in the 
lowest adjusted quotation of $190,845. The following 
table lists the contractors who submitted quotations, the 
amounts of the quotations and the MBEAVBE/LBE status 
of the contractors: 

Contractor Quotation MBE/LBE Status 

Shaw Pipeline, Inc. $201,125 LBE 

J.M.B. Construction, Inc. $212,050 MBE/LBE 

2. As noted above, PUC awarded the contract in the 
amount of $212,050. However, the final contract cost was 
$237,271 (or $25,221 more than the contract amount of 
$212,050) because, according to Mr. P.T. Law of DPW, 
DPW requested a change order to the contract for the 
contractor to perform unexpected additional work 
repairing a side sewer that runs directly beneath the 
damaged main sewer. 

3. PUC reports that the replacement of the damaged 
sewer began on June 17, 1998 and was completed on 
August 28, 1998. 

4. Mr. Law advises that due to various delays in 
receiving expenditure documentation from the contractor, 
the PUC is requesting approval of this resolution over 
eight months after the construction work was completed. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

Item 3 - File No. 99-0778 



Department: 
Item.: 

Amount: 
Source of Funds: 
Description: 



Budget: 



Comments: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving tbe expenditure of funds for the 
emergency work to replace a structurally inadequate 
sewer on Pine Street between Montgomery and Sansome 
Streets. 

$311,921 

FY 1998-99 PUC Repair and Replacement Fund 

The Public Utilities Commission (PUC) advises that on 
June 8, 1998, the sewer located on Pine Street between 
Montgomery and Sansome Streets failed, and immediate 
replacement was required in order to protect the health, 
welfare, and property of the citizens of San Francisco. 
The PUC declared an emergency on June 9, 1998. In 
accordance with Section 6.30 of the Administrative Code, 
the PUC initiated expedited contract procedures, and 
awarded a contract to J.M.B. Construction, Inc. in the 
amount of $255,705. 

The total actual project cost was $311,921, including 
$253,771 in actual construction costs (or $1,934 less than 
the contract award amount, see Comment No. 2), $29,150 
for DPW engineering and $29,000 for DPW construction 
management and inspection costs. 

A summary of this budget is as follows: 



Construction Contract 

DPW Bureau of Engineering 

DPW Bureau of Construction Management 
Construction Management 
Contract for Construction Inspection 

Total 



$253,771 


29,150 


3,000 


26.000 



$311,921 



1. Invitations for proposals were faxed to 22 contractors 
on June 17, 1998. Two quotations were received by PUC 
from qualified contractors on June 19, 1998. PUC reports 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



that Darcy & Harty Construction submitted the lowest 
quotation in the amount of $242,665. However, according 
to Mr. P.T. Law of DPW, after application of business 
enterprise preferences in accordance with Chapter 12D of 
the San Francisco Administrative Code, J.M.B. 
Construction, Inc., which submitted the second lowest 
quotation, was awarded the contract in the amount of 
$255,705. A preference of approximately $25,571 or 10 
percent was applied to the J.M.B. Construction, Inc. 
quotation, resulting in the lowest adjusted quotation of 
$230,134. The following table lists the contractors who 
submitted quotations, the amounts of the quotations and 
the MBE/WBE/LBE status of the contractors: 

Contractor Quotation MBE/LBE Status 

Darcy & Harty Construction $242,665 LBE 

J.M.B. Construction, Inc. $255,705 MBE/LBE 

2. PUC reports that although the contract was awarded 
in the amount of $255,705, the final contract cost, after 
adjustment for actual quantities used during 
construction, was $253,771 or $1,934 less than the 
contract amount of $255,705. 

3. PUC reports that the replacement of the damaged 
sewer began on June 22, 1998, and was completed on July 
29, 1998. 

4. Mr. Law advises that due to various delays in 
receiving expenditure documentation from the contractor, 
the PUC is requesting approval of this resolution over 
nine months after the construction work was completed. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

Ma}' 12, 1999 Finance and Labor Committee Meeting 



Item 4 - File No. 99-0779 
Department: 

Item: 

Amount: 
Source of Funds: 
Description: 



Budget: 



Comments: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving tbe expenditure of funds for tbe 
emergency work to replace a structurally inadequate 
sewer on 4tb Street between Folsom and Howard Streets. 

$133,040 

FY 1998-99 PUC Repair and Replacement Fund 

Tbe Public Utilities Commission (PUC) advises tbat on 
January 15, 1998, tbe sewer located on 4tb Street 
between Folsom and Howard Streets failed, and 
immediate replacement was required in order to protect 
the health, welfare, and property of the citizens of San 
Francisco. The PUC declared an emergency on January 
15, 1998. In accordance with Section 6.30 of the 
Administrative Code, the PUC initiated expedited 
contract procedures, and awarded a contract to Shaw 
Pipeline, Inc. which submitted the lowest quotation in the 
amount of $103,185. 

The total actual project cost was $133,040, including 
$99,040 in actual construction costs (or $4,145 less than 
the contract award amount, see Comment No. 2) and 
$34,000 for DPW engineering and construction 
management costs. 

A sum mar}' of this budget is as follows: 

Construction Contract $99,040 

DPW Bureau of Engineering 18,000 

DPW Bureau of Construction Management 16.000 

Total $133,040 

1. Invitations for proposals were faxed to 21 contractors 
on January 17, 1998. Four quotations were received by 
PUC from qualified contractors on January 20, 1998. 
PUC reports that Shaw Pipeline, Inc. submitted the 
lowest quotation and was awarded the contract in the 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



amount of $103,185. The following table lists the 
contractors who submitted quotations, the amounts of the 
quotations, and the MBE/WBE/LBE status of the 
contractors: 



Contractor Quotation 

Shaw Pipeline. Inc. $103,185 

Uniacke Construction, Inc. $105,450 
Darcy & Harty/San Luis JY $115,991 
Harty Pipelines, Inc. $118,834 



MBE/LBE Status 

LBE 

LBE 

MBE/LBE 

MBE/LBE 



2. PUC reports that although the contract was awarded 
in the amount of $103,185. the final contract cost, after 
adjustment for actual quantities used during 
construction, was $99,040 or $4,145 less than the contract 
amount of $103,185. 

3. PUC reports that the replacement of the damaged 
sewer began on January 28, 1998, and was completed on 
February 17, 1998. 



Recommendation: 



4. Mr. P.T. Law of DPW advises that due to various 
delays in receiving expenditure documentation from the 
contractor, the PUC is requesting approval of this 
resolution over fourteen months after the construction 
work was completed. 

Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

10 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

Item 5 - File No. 99-0780 



Department: 
Item: 

Amount: 
Source of Funds: 
Description: 



Budget: 



Comments: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving the expenditure of funds for the 
emergency work to replace two structurally inadequate 
sewers bordered bj r Baltimore Way, Canyon Drive, 
Cordova and Naylor Streets. 

$68,429 

FY 1998-99 PUC Repair and Replacement Fund 

The Public Utilities Commission (PUC) advises that on 
February 16, 1998, the two sewers bordered by Baltimore 
Way, Canyon Drive, Cordova and Naylor Streets failed, 
and immediate replacement was required in order to 
protect the health, welfare, and property of the citizens of 
San Francisco. The PUC declared an emergency on 
February 27, 1998. In accordance with Section 6.30 of the 
Administrative Code, the PUC initiated expedited 
contract procedures, and awarded a contract to K.J. 
Woods Construction which submitted the lowest 
quotation in the amount of $46,990. 

The total actual project cost was $68,429, including 
$46,279 in actual construction costs (or $711 less than the 
contract award amount, see Comment No. 2) and $22,150 
for DPW engineering and construction management costs. 

A summary of this budget is as follows: 

Construction Contract $46,279 

DPW Bureau of Engineering 10. 150 

DPW Bureau of Construction Management 12.000 

Total $68,429 

1. Invitations for proposals were faxed to 16 contractors 
on March 9, 1998. Four quotations were received by PUC 
from qualified contractors on March 11, 1998. PUC 
reports that K.J. Woods Construction submitted the 
lowest quotation and was awarded the contract in the 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

11 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



amount of $46,990. The following table lists the 
contractors who submitted quotations, the amounts of the 
quotations, and the MBEAVBE/LBE status of the 
contractors: 

Contractor Quotation MBE/LBE Status 

K.J. Woods Construction $46,990 LBE 

Harty Pipelines, Inc. $62,445 WBE/LBE 

Darcy & Harty Construction $71,935 LBE 

Troy's Contracting $85,147 MBE/LBE 

2. PUC reports that although the contract was awarded 
in the amount of $46,990, the final contract cost, after 
adjustment for actual quantities used during 
construction, was $46,279 or $711 less than the contract 
amount of $46,990. 

3. PUC reports that the replacement of the two damaged 
sewers began on March 17, 1998, and was completed on 
April 6, 1998. 

4. Mr. P.T. Law of DPW advises that due to various 
delays in receiving expenditure documentation from the 
contractor, the PUC is requesting approval of this 
resolution over thirteen months after the construction 
work was completed. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

12 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

Item 6 - File No. 99-0781 



Department: 



Item: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving tbe expenditure of funds for the 
emergency work to replace a structurally inadequate 
sewer on Broderick Street between Broadway and Vallejo 
Streets. 



Amount: 
Source of Funds: 
Description: 



Budget: 



$77,650 

FY 1998-99 PUC Repair and Replacement Fund 

The Public Utilities Commission (PUC) advises that on 
March 6, 1998, the sewer located on Broderick Street 
between Broadway and Vallejo Streets failed, and 
immediate replacement was required in order to protect 
the health, welfare, and property of the citizens of San 
Francisco. The PUC declared an emergency on March 9, 
1998. In accordance with Section 6.30 of the 
Administrative Code, the PUC initiated expedited 
contract procedures, and awarded a contract to K.J. 
Woods Construction which submitted the lowest 
quotation in the amount of $56,920. 

The total actual project cost was $77,650, including 
$54,000 in actual construction costs (or $2,920 less than 
the contract award amount, see Comment No. 2) and 
$23,650 for DPW engineering and construction 
management costs. 

A summary of this budget is as follows: 

Construction Contract $54,000 

DPW Bureau of Engineering 13,650 

DPW Bureau of Construction Management 10.000 



Comments: 



Total 



$77,650 



1. Invitations for proposals were faxed to 22 contractors 
on March 16, 1998. Two quotations were received by 
PUC from qualified contractors on March 17, 1998. PUC 
reports that K.J. Woods Construction submitted the 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

13 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



lowest quotation and was awarded the contract in the 
amount of $56,920. The following table lists the 
contractors who submitted quotations, the amounts of the 
quotations, and the MBE/WBE/LBE status of the 
contractors: 

Contractor Quotation MBE/LBE Status 

K.J. Woods Construction $56,920 LBE 

Darcy & Harty/San Luis JY $64,635 MBE/LBE 

2. PUC reports that although the contract was awarded 
in the amount of $56,920, the final contract cost, after 
adjustment for actual quantities used during 
construction, was $54,000 or $2,920 less than the contract 
amount of $56,920. 

3. PUC reports that the replacement of the damaged 
sewer began on March 23, 1998 and was completed on 
April 13, 1998. 

4. Mr. P.T. Law of DPW advises that due to various 
delays in receiving expenditure documentation from the 
contractor, the PUC is requesting approval of this 
resolution approximately thirteen months after the 
construction work was completed. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

14 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

Item 7 - File No. 99-0782 



Department: 



Item: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 

Resolution approving tbe expenditure of funds for the 
emergency work to perform immediate remedial 
improvements to the sewer s\ T stem located near Davidson, 
Custer and Rankin Streets. 



Amount: 
Source of Funds: 



$1,834,839 

Previoush* reserved funds from the sale proceeds of 1998 
PUC Sewer Revenue Bonds 



Description: 



According to Mr. P.T. Law of the DPW, Davidson, Custer 
and Rankin Streets have been prone to flooding during 
moderate to heavy rainfall storms because the sewer 
system there is unable to adequately support the 
rainwater runoff from such storms. Mr. Law advises that 
this sewer system required immediate remedial 
improvements before the start of another rainy season in 
order to prevent further flooding of Davidson, Custer and 
Rankin Streets and thereby protect the health, welfare 
and property of the citizens of San Francisco. As such, on 
March 3, 1998, PUC declared that an emergency existed 
at the sewer system located near Davidson, Custer and 
Rankin Streets. In accordance with Section 6.30 of the 
Administrative Code, the PUC initiated expedited 
contract procedures for the subject emergency work, and 
awarded a contract to A. Ruiz Construction in the amount 
of $986,353. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

, i" 

15 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



Budget: 



The total actual project cost was $1,834,839, including 
$1,253,317 in actual construction costs (or $266,964 more 
than the contract award amount, see Comment No. 2), 
$355,232 for DPW engineering and construction 
management costs and $226,290 for various other project 
costs. 

A summary of this budget is as follows: 

Construction Contract $1,253,317 

DPW Bureau of Engineering 215,000 

DPW Bureau of Construction Management 140,232 

Other Project Costs 226.290 



Total 



$1,834,839 



Comments: 



The Attachment, provided by DPW, contains further 
budget details to support this 1,834.839 budget. 

1. Invitations for proposals were faxed to 11 contractors 
on March 31, 1998. Five quotations were received by 
PUC from qualified contractors on April 10, 1998. PUC 
reports that A. Ruiz Construction submitted the second 
lowest quotation, but was awarded the contract in the 
amount of $986,353. Willie Electric Company, the lowest 
bidder, was rejected as a non-responsive firm because the 
firm did not provide an acceptable performance bond, 
according to Mr. Law. The following table lists the 
contractors who submitted quotations, the amounts of the 
quotations and the MBEAVBE/LBE status of the 
contractors: 



Contractor 

Willie Electric Company 
A. Ruiz Construction 
Ranger Pipeline / Equivel 

Grading & Paving JY 
Darcy & Harty / 

San Luis JY 
Marinship Construction 



Quotation MBE/LBE Status 
$803,725 
$986,353 



$1,137,590 

$1,218,021 
$1,644,595 



MBE/LBE 

MBE/LBE 

MBE/LBE 
MBE/LBE 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



16 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

2. As noted above, PUC awarded the contract in the 
amount of $986,353. However, the final contract cost was 
$1,253,317 (or $266,964 more than the original contract 
amount of $986,353) because, according to Mr. Law, the 
DPW requested a change order to the contract for the 
contractor to perform unanticipated additional work 
replacing side sewers, installing water pumps and 
modifying the existing rainwater and sewage collection 
tank in order to prevent further failures of the sewer 
system at Davidson, Custer and Rankin Streets. 

3. PUC reports that the necessary work on the sewer 
system began on May 4, 1998, and was completed on May 
6, 1999. 

Recommendation: Approval of the proposed resolution is a policy matter for 

the Board of Supervisors since the contract, which was 
not awarded under the City's formalized competitive 
bidding procedures, was over $1.2 million and the 
emergency project took over one year to its completion. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

17 



eS/BS^SS 16:35 SFDFU BCE HYDRAULICS * 413 <^ fcWbl NO. 545 £27 

Attachment 



Page 3 PUC Calendar Item Number: 



Deoarunest: Uriiinc Fnynesnug Bureau 



Project: CW-K8, Rankin Drainage Basin Improveraest 
Emergency Sewer Work 



As shown, the cost of this project is projected to be SI.334,838.80: 

Bureau of Engineering (Planning, Design, and Construction Support i S 2".5,0C0.C0 

Bureau of Construction Management (Construction Inspection) S ]4C JL32.00 

Department of Parking &. Traffic (Traffic Routing Specifications) S *;C,000.00 

Construction Contract Cost S 1.253.3'. 6. 8C 

Sewer Spot Repair Contract S 40.00C.OC 

Consultant - Don Todd Associates (Construction Management) S ^O.COO.OO 

Hetch Hetchy (Provide Power for Pump Operahon) S l-,290.00 

Purchasing (Sewer Manhole Covers Molds) S 2,CC0.C0 

Public Utilities Commission (Project Management) 5 5C.000.CO 

Clean Water Department (Pump Design) S 50.OOC.0C 

Other Direct Charge; rPerrnittmg & Various Utility Clearance Fees': S 20.00C 00 

Total Project Cost SI ,834,838.80 

This project is pan of the Clean Water Program's sewer replacement program. Funds arc available from 
the 1998 Sewer Revenue Bond Fund (SOCPF/883, FAMIS Project No. CENCMPRK49 Job Od~\"o 

1449N). ' 



18 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

Item 8 - File 99-0801 

Note: This item was continued at the May 5, 1999 Finance and Labor 
Committee Meeting. 



Department: 
Item: 

Amount: 
Source of Funds: 
Budget: 



Description: 



Comments: 



Department of A dminis trative Services 
Department of Children, Youth and Their Families 

Request for release of $318,838 to complete the 
construction, equipment and fxu-nishings for the 
City Hall Child Care Center. 

$318,838 

General Fund 



Exterior Playground 
Interior Improvements 
Fixtures, Furnishings &. Equip 

Subtotal 
5 Percent Contingency 
Total 



$ 158,350 
90,000 
55.305 

$303,655 
15.183 

S318,838 



The proposed request would release $318,838 of the 
total of $350,000 which was placed on reserve in 
the FY 1998-99 Department of Administrative 
Sendees budget for a Child Care Center in City 
Hall. According to Mr. Steve Nelson of the 
Department of Administrative Services, these 
funds were placed on reserve for the City Hall 
Child Care Center because, at the time of the FY 
1998-99 budget deliberations, the Department 
could not identify (a) the specific childcare facility 
requirements and (b) the associated costs that 
would be necessary to complete such a facility. 

The new Child Care Center would consist of 
approximately 3,500 square feet located in the 
northwest quadrant of the basement of City Hall 
with the main entrance and access from McAllister 
Street. In addition, the Child Care Center would 
have two outdoor pla3 T areas on the McAllister 
Street side of City Hall, comprising an additional 
approximately 1,800 square feet. 

1. Mr. Nelson reports that he does not have a 
separate breakdown of the costs to construct the 
basic space for the Child Care Center, which was 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

19 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

completed as part of the overall City Hall 
renovation project. However, Mr. Nelson reports 
that in the final plan there will be two separate 
children's bathrooms and one adult bathroom as 
well as two food preparation areas in the proposed 
space, although the children will be required to 
bring their own lunches and Marin Day School will 
provide morning and afternoon snacks. Mr. Nelson 
notes that the construction of this space has 
already included one bathroom for children, one 
bathroom for adults, three undercounter 
refrigerators, one full-size refrigerator, one washer 
and dryer and two dishwashers. Mr. Nelson notes 
that the requested $318,838 would complete the 
necessary renovations to make the space useable 
for a Child Care Center. 

2. As noted above, the City Hall Child Care Center 
would have two exterior play areas, one for 
toddlers, at a cost of $80,260, and one for infants, 
at a cost of $78,090, for a total cost of $158,350. The 
Budget Analyst questioned why the City Hall Child 
Care Center is proposing to construct these two 
exterior play areas, when over the past five years, 
the City has spent over $600,000 of Open Space 
Funds to construct two extensive play areas, 
specifically geared toward young children in the 
Civic Center Plaza, directly across the street from 
City Hall. Ms. Karen Hong, of the Department of 
Administrative Services responded that (1) the 
Civic Center Plaza facilities are currently 
overcrowded since other childcare facilities in the 
Tenderloin use these play areas and 2) Marin Day 
Schools would need a waiver of State licensing 
requirements to be able to use these play areas. 
Furthermore, Ms. Hong notes that Marin Day 
Schools has agreed to allow neighborhood 
Tenderloin childcare facilities to use the proposed 
two new City Hall exterior play areas. 

In addition, the exterior play areas are proposed to 
have wrought iron fencing surrounding the area, at 
a total cost of $34,688. An alternative chain link 
fence, at a total cost of $16,955, or less than half 
the cost of the wrought iron fence, was rejected 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

20 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



because according to Mr. Nelson, it was not 
architecturally consistent with the rest of City 
HalL and was determined to be less safe for the 
children. The actual play equipment for the 
children in the play areas is anticipated to cost 
$25,864, including a playstructure for $8,752 and a 
play maze for $7,427. 

3. Furthermore, the budget details reviewed by the 
Budget Analyst's Office reflected toy and children's 
furniture costs that appear excessive. For example, 
$190 for a set of five small trucks, $610 for a set of 
nursery mini hollow blocks, $710 for a set of half 
school unit blocks, $185 for Bouncy Birds, 32 small 
chairs for the children for $2,036, or an average 
cost of $64 per chair and $507 for aquariums. In 
response, Ms. Hong reports that the childcare 
facility furnishings will be consistent with the high 
quality of the other furnishings in City- Hall, and 
that the Department of Administrative Services 
and Marin Day School agreed to the need to 
purchase only high quality toys and equipment 
that would last for a long time and not require 
replacement in the near future. 

4. The interior construction cost estimate of 
$90,000 includes a contingency of approximately 20 
percent. Ms. Sherri Williams of the City Architect's 
Office reports that this 20 percent contingency will 
be needed for additional Americans With Disability 
Act improvements (ADA) and fire safety 
renovations. Ms. Williams notes that this interior 
work will actually be completed by the Bureau of 
Building Repair (BBR) and a contractor, ISEC, that 
specializes in interior woodwork and equipment, 
who has been working on the City Hall 
renovations. The Budget Analyst also notes that 
the budget for the two exterior play areas includes 
a contingency factor of an unquantified amount. 
The Budget Analyst therefore questions why the 
subject request includes an additional five percent 
contingency of $15,183, on top of these two other 
construction contingencies. The Budget Analyst 
therefore recommends that this additional five 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

21 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

percent contingency be eliminated for a savings of 
$15,183. 

5. Mr. Nelson reports that the proposed Child Care 
Center will be able to accommodate a total of 49 
children, based on the following breakdown by 
ages: 

Infant & Toddlers (2 mos.- 30 mos.) 21 

Young Preschool (30 mos. - 3 K yrs.) 12 

Preschool (3 J4 yrs. - 5 Vi yrs.) 16 

Total 49 

Mr. Nelson notes that it is likely that all 49 
available spots for children will not be filled 
immediately. However, based on a total requested 
cost of $318,838, and assuming that all 49 spots are 
eventually filled, it results in an average capital 
expenditure of $6,507 per child. 

6. Mr. Nelson reports that initially the City did not 
receive any responses to the City Hall Child Care 
Center Request For Proposal (RFP), until the date 
was extended and more requests were issued. 
Ultimately, the City only received two responses to 
their RFP, one from Florence Crittenden Services 
and one from Marin Day Schools. Mr. Nelson notes 
that Florence Crittenden Sen-ices specializes in at- 
risk youth, and was not determined to have 
significant experience with infant day care services. 
Marin Day Schools was selected as the operator of 
the proposed City Hall Child Care Center, based on 
a review panel process consisting of representatives 
from the Department of Children, Youth and Their 
Families, the Department of Administrative 
Services, Department of Human Services and the 
Mayor's Office, according to Mr. Nelson. 

7. Under a pending three-year contract between the 
City and Marin Day Schools, which would extend 
from July 1, 1999 through June 30, 2002, Marin 
Day Schools would pay the City $1 per year for the 
proposed space and the City would be responsible 
for renovations of the facility of up to $350,000, and 
for providing all utilities, janitorial and 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

22 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



maintenance services. Under this agreement, 
Marin Daj r Schools would collect all of the revenues 
and pay all of the operating expenses. Mr. Nelson 
notes that the Department of Children, Youth and 
Their Families will be entering into this three-year 
operating agreement with Marin Day Schools, to be 
effective July 1, 1999, which would not be subject 
to the Board of Supervisors approval. However, Mr. 
Nelson reports that a resolution authorizing the 
City to enter into a lease with Marin Day Schools 
for Marin to pay the City $1 per year is currenthy 
being prepared and will be subject to the approval 
of the Board of Supervisors. 

8. As shown in Attachment 1, provided by Marin 
Day Schools, the estimated operating costs for this 
facility is $385,000 the first year of operation, 
increasing to $422,000 by the third } r ear of 
operation. Approximately 97 percent of the 
operating costs, or $375,000 of the total $385,000 
operating costs during the first year is anticipated 
to be financed from tuition income. However, the 
tuition income includes an annual $50,000 General 
Fund subsidy (See Comment No. 10). The balance 
of approximately three percent of the operating 
costs will be financed from other revenues and 
donations realized by Marin Day Schools. 

9. Attachment 2, provided by Marin Day Schools 
identifies the monthly tuition rates ranging from 
$285 per child for two mornings for the preschool 
children to $1,045 per child for five full days for the 
infant/toddler program. However, since most of the 
people using the facility are Likely to be full-time 
City employees, it is likehy that five full days of 
care would be needed for their children. 

Given the need for moderate child care costs for 
City employees, the Budget Analyst questions the 
monthly costs for full-time care of between $810 for 
preschool students to $1,045 for infant/toddlers. 
Additionally, Marin Day Schools charges a $100 
annual activity fee and a $50 student registration 
fee. Mr. Nelson reports that the proposed tuition 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

23 



Memo to Finance and Labor Committee 

Maj ? 12, 1999 Finance and Labor Committee Meeting 

rates are the same rates that Marin Day Schools 
charges at its other facilities. 

10. According to Mr. Nelson, beginning in FY 1999- 
2000, the City, through the Department of 
Administrative Services, will contribute an annual 
General Fund subsidy of $50,000 to the proposed 
Child Care Center to provide tuition scholarships 
and subsidies for low-income families using the 
City Hall Child Care Center. Mr. Nelson notes that 
the Department budgeted $175,000 for six months 
of tuition subsidies in FY 1998-99 for the City Hall 
Child Care Center, but under the proposed plan, 
this would be reduced to the currently projected 
$50,000 annually. Mr. Nelson adds that the City's 
$50,000 annual contribution is included as part of 
the tuition income line item in Attachment 1. 

11. Mr. Nelson reports that there is likely to be 
more requests to place children in the City hall 
Child Care Center than the 49 available slots. 
Therefore, Ms. Hong notes that a priority system 
has been developed by the City Hall Policy 
Committee, which is comprised of representatives 
from the Controller's Office, Mayor's Office, 
Treasurer's Office, Department of Administrative 
Services and the City Architect. Under this priority 
system, first priority will be given to employees 
who work in City Hall, including City employees 
and non-City employees who work in the City Store 
and cafes. Second priority will be given to City 
employees who work in the Civic Center area, and 
the third priority will be given to other City 
employees. In addition, Mr. Nelson notes that of 
the total 49 available childcare slots, five slots will 
be set aside for children from the adjacent 
Tenderloin neighborhood. However, in all cases, 
Mr. Nelson reports that the actual selection of child 
care applicants will be made by the Marin Day 
Schools. 

12. Although City Hall opened in early January of 
1999, the City Hall Child Care Center is not 
anticipated to open until September of 1999, or 
eight months later. Mr. Nelson reports that this 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

24 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



delay occurred due to safety concerns, since all of 
the construction work was not completed in City 
Hall when it opened in January of 1999, and due to 
the operational difficulty for Marin Day Schools to 
begin a Child Care Center in mid-year, rather than 
at the beginning of the regular school year. 

13. In response to the Finance and Labor 
Committee's request for a summary of childcare 
rates at the Yerba Buena Childcare Center, Ms. 
Fran Kipnis of the Department of Children, Youth 
and Their Families reports that she will be able to 
provide such information at the May 12, 1999 
Finance and Labor Committee Meeting. 

14. The Budget Analyst raises the following 
concerns about the requested release of reserve: (1) 
there were only two responders to the City's RFP to 
provide childcare services in City Hall, and ordy 
one of the responders, Marin Day Schools, had 
extensive experience in pro\dding both 
infant/toddler and preschool services, (2) the 
facility has two food preparation areas, with a 
refrigerator in each of the two food preparation 
areas as well as two additional refrigerators in the 
other two rooms, yet the children will be 
responsible for bringing their own lunches to 
school, and Marin Day will just be providing snacks 
for the children, (3) two exterior play areas are 
proposed, at a total cost of $158,350, although 
directly across the street in the Civic Center Plaza, 
the City recently constructed extensive play areas 
for small children, at a cost of over $600,000 with 
Open Space funds, (4) expensive furnishings, 
equipment and toys are being selected for this 
facility at a total cost of $81,169, (5) an additional 
contingency of five percent is provided under this 
subject request for all of the proposed expenditures, 
at a cost of $15,183, which is on top of two other 
contingencies previously allocated for the interior 
and exterior construction projects, (6) there is a 
need for moderate child care costs for City 7 
employees. As noted above, the monthly costs for 
full-time child care range between $810 to $1,045 
per month per child, in addition to the annual 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

25 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

activity fee of $100 and an additional $50 student 
registration fee. 

Recommendation: At a minimum, reduce the request by $15,183 to 

eliminate the additional five percent contingency, 
as referenced in Comment Nos. 4 and 14 above. 
Approval of the remaining request of $303,655 is a 
policy matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

9£ 




obZj, 




Attachment '. 



^ 



ro 



tf> 



SAN FRANCISCO CFTY HALL CHILD CARE CENTER H( " Ir^ 4 ^ J 

PPOPO.S=ri np=aA"nNG 8UQG=7S .A*j#r 



PROPOSED OPERATING 3UDGE7S 



4u^ 

i 



INCOME 

Tuition 
Registration 
Activity Fees 

Donations 



^ 



TOTAL INCOME 



fitful 
4\ 



1 J 






J* 






ft.OOOJ 
335,000.00 



YEAR TWO YEAR THREE YEAR FOUR 



390,000.00 
3,50000 
2,50000 
4.00O00 

400,000.00 



410,000.00 
4.000.00 
3,00000 
5,000.00 

422,000.00 



430,000.00 
4,000.00 
3,000.00 
5,000.00 

442,000.00 



EXPENSE 

Salaries 
Payroll Taxes 
Health Insurance 
Workers Comp. 
Admin/Management 
Building & Grounds 
Equipment 
Faculty Development 
Faculty Incentives 
Food 

Instructional Supply 
Insurance 

Maintgnancs Supply 
Office Supply 
Patty Cash 
Frinting & copying 
Special Events 
Telephone 

TOTAL EXPENSE 



,230.000.0? ) 

"23.050.00 

S.50O00 

3.000.00 

47.5OO00 

1.000.00 

50O00 

1,500.00 

1,200.00 

2.80O.00 

5,000.00 

3,600.00 

2,500.00 

1.200.00 

1,000.00 

1.200.00 

1,900.00 

600.00 

3S5,00OD0 



290,000.00 

25,10000 

5,300.00 

3.100.00 

50,000.00 

1,000.00 

50O00 

1.50000 

i.2oaoo 

3,000,00 
6,000.00 
3,700.00 
2.60000 
1,200.00 
1.00000 
1 .200.00 
2,00000 
60000 

40Q.00OD0 



305,000.00 
27,000.00 
S.50O00 
3,500.00 
52,500.00 
1,500.00 
1. 000.00 
1,500.00 
1,200.00 
3,000.00 
6,500.00 
3,800.00 
2,700.00 
1,500.00 
1,00000 
1,200.00 
2.000.00 
60O00 

422.000.X 



317,000.00 
28.000.00 
7,000.00 
3,600.00 
55,000.00 
3,000.00 
1,400.00 
1,500.00 
1.500.00 
3.400.00 
.7,000.00 
4,000.00 
3,000.00 
1,500.00 
1,00000 
1,500.00 
2000.00 
600.00 

442,000.00 



27 




Attachment 2 



MARIN DAY SCHOOLS 

SAN FRANCISCO CITY HALL CAMPUS 

September 1998 through August 1999 



.. Monthly Katn 

icaolarsatps ana siidirxg scaie fees are available. Pleas; 



a below. 



SCHEDULES 
PRESCHOOL 

Morning 

Afternoon 

Full 

INFANT/TODDLER 

Morning 

-Afternoon 

Pull 



HOURS 

7:30-12:30 
12:30-6:00 
7:30-6:00 



7:3 0-1230 
12J3 0-6:00 
7:30-6:00 



DAYS PER WEEK 

2 3 s 

S225 S3gs £525 

S225 S385 £525 

S405 5575 5810 



£335 S4S0 S58S 
S335 S480 S685 
S480 S705 Sic*5 



YEARLY FEES 

Transition and Preschool Oniy 

Yearly Activity Fee si 00 

Drop In Daycare Card s 60 

Continuing Student Registration S 50 



Covers Special Events 
Drop b Chad Cart 10 
E>ue in the Spring 



PLEASE NOTE 

"Marin Day Schools is commmed to serving and suooorting fiuofr En 
u-Oung to work with families experiencing financial Difficulties We offer 
anancal aid whenever possible Applications for scholarship assistance 
through the school or business office and are awarded on a first come, fix 

Q ?f "^ "" 8VaILlbie - P1&5: ~ ** "*«— ^ talk to us anvranr 
or^y other marters. MDS 39 Drumm Street, San Francisco CA Will 



We are always 
scholarships and 
tnay be obtained 
St served basis as 
, regarding these 
(<15) 331-7766 



AJ I tumons are cue on the first of eua month. Quality child care k castiv and w- realiv dn 
^y on your prompt payments. Unless specific arrangements are made/a CO^Tw 

^^^ returned oy the bank. We appreciate your cooperation in pavm/fe^Tl^ 
Please De sure to read the MDJLPirrnl Safiag for all poSss and prS^ °" ^ 



roT^L P.Eu: 



28 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

Item 9 - File 99-0880 



Department: 



Item: 



Term of License: 

Location and 
Square Footage: 



Amount: 



Utilities, Janitorial 
And Maintenance: 

Right of Renewal: 



Description: 



Department of Administrative Services 
Real Estate Department 

Ordinance authorizing and approving a license 
agreement between the City and County of San 
Francisco, as Licensor, and Marin Day Schools, as 
Licensee, for a child care facility located on the 
ground floor level of City Hall and at an additional 
outdoor facility area. 

July 1, 1999 through June 30, 2002 (three years) 



Approximately 3,500 square feet of ground floor 
space in City Hall and adjacent outside play areas 

$1 per year payable by Marin Day Schools to the 
City 



To be provided by the City 

Director of Property may extend license, based on 
extensions in the Operation Grant Agreement 

The proposed ordinance would authorize and 
approve a revocable license agreement between the 
City and Marin Day Schools, extending from July 
1, 1999 through June 30, 2002, a period of three 
years. Under this license agreement, the City 
would provide space in the basement of City Hall 
and adjacent outside play areas for Marin Day 
Schools to operate a Child Care Center. Marin Day 
Schools will pay the City $1 per year to occupy the 
City Hall space. 

In accordance with the proposed license agreement, 
the City may at its sole option, revoke the license at 
any time, without cause and without any obligation 
to pay any consideration to Marin Day Schools. The 
license agreement also states that all of the 
furniture, fixtures, office and child care equipment 
that is purchased by the City is the property of the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



29 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

City. Under the proposed license agreement, Marin 
Day Schools would also indemnify the City against 
all claims, damages and losses resulting from the 
proposed City Hall Child Care Center. 

Comments: 1. Mr. Steve Legnitto of the Real Estate 

Department reports that the fair market rent for 
the proposed space would be SI to $3 per square 
foot per month, depending on whether the space 
were used for storage, office or hearing room 
purposes. If the approximately 3,500 square feet of 
interior space that the Marin Day School will use 
for the Child Care Center were instead used for 
office, storage or hearing room purposes, the fair 
market annual rental rate would be $42,000 to 
$126,000. To explain the reason why Marin Day 
Schools is only being charged $1 per year to occupy 
and operate the Child Care Center in City Hall, 
Mr. Legnitto reports that the City requested that 
the Child Care Center be located in City Hall and 
this Child Care Center will serve a public purpose. 
Similarly, Mr. Legnitto notes that the City 
requested that the U.S. Post Office be located in 
City Hall, it serves a public purpose and the City 
only charges the U.S. Postal Service $1 annual 
rent. According to Mr. Ted Lakey of the City' 
Attorney's Office, if the Board of Supervisors can 
find and determine that a public purpose is being 
served, then the City can charge less than the fair 
market rate. 

2. According to Mr. Legnitto, the proposed 
ordinance would authorize a license agreement 
rather than a lease agreement, because under a 
license agreement, the legal remedies to terminate 
the license can be expedited, if violations occur. Mr. 
Legnitto reports that the proposed license 
agreement between the City and Marin Day 
Schools can be terminated if Marin Day Schools 
violates the Operation Grant Agreement, under 
which the City provides an annual $50,000 grant to 
Marin Day Schools to subsidize the child care 
operation costs. Mr. Lakey notes that the proposed 
Operation Grant Agreement is a separate contract 
between the City and Marin Day Schools, and, in 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

30 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

general, tbe Board of Supervisors does not approve 
contracts of less than $1 million. Therefore, the 
Operation Grant Agreement is not subject to 
approval by the Board of Supervisors. 

3. The proposed license agreement states that the 
commencement date would be July 1, 1999. 
However, Ms. Deborah Alvarez of the Department 
of Children, Youth and Their Families reports that 
the City Hall Child Care Center is not likely to 
open until early September of 1999. Therefore, Mr. 
Nelson and Mr. Legnitto report that the actual 
commencement date of the proposed license 
agreement will be amended to occur just prior to 
the opening of the City Hall Child Care Center. 

4. Ms. Nelson reports that the estimated annual 
cost for the City to provide janitorial, maintenance 
and utilities for the Child Care Center is 
approximatehy $32,000 and the funds for such 
expenses will be included in the Department of 
Administrative Services budget for FY 1999-2000. 

5. As noted above, the proposed license may be 
extended beyond the initial three-3 r ear period by 
the Director of Property, to coincide with 
extensions to the Operation Grant Agreement. Mr. 
Legnitto reports that an extension of the license 
agreement or the Operation Grant Agreement 
would not be subject to approval from the Board of 
Supervisors. 

Recommendation: Approval of the proposed ordinance is a policy 

matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

31 



Memo to the Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

Item 10 • File 99-0881 



Departments: 



Item: 



Department of Administrative Services 
Department of Children, Youth and Their Families 

Ordinance exempting the City Hall Child Care 
Center outdoor play space and equipment from the 
competitive bidding requirements of the San 
Francisco Administrative Code. 



Description: 



In accordance with the City's Administrative Code 
Section 6.05, when the cost for the construction or 
repair of public buildings and the associated 
materials, supplies and equipment exceeds 
$50,000, competitive bidding for such contracts is 
required. The design and construction, including 
the equipment, for the outdoor play space for the 
City Hall Child Care Center is estimated to cost 
$158,350, and is therefore subject to this provision 
of the City's Administrative Code. 

In order to expedite the opening the City Hall Child 
Care Center, the proposed ordinance would exempt 
the design, construction and equipment for the 
outdoor play space for the proposed City Hall Child 
Care Center from such competitive bidding 
requirements. 

Under the proposed ordinance, the Department of 
Administrative Services would be authorized to 
negotiate and enter into all contracts necessary or 
appropriate for the design, construction and 
equipment for the City Hall Child Care Center 
outdoor play space without the use of the City's 
formal competitive bidding procedures. In addition, 
the proposed ordinance states that the Department 
of Administrative Services will comply with all 
applicable requirements set forth in Chapters 12B, 
12C and 12D of the City's Administrative Code, 
which address nondiscrimination in various 
contracts and the City's MBEAVBE/LBE 

Ordinance. 



Comments: 



1. The City, through the Department of Children, 
Youth and Their Families has selected Marin Day 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



32 



Memo to the Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

Schools to operate the Child Care Center in City 
Hall. According to Ms. Deborah Alvarez, the 
proposed City Hall Child Care Center cannot be 
granted a license from the State of California to 
operate a child care facility until an appropriate 
outdoor play space at the site is available. Ms. 
Alvarez currently projects that the exterior play 
space as well as the entire City Hall Child Care 
Center will open by early September of 1999. 

2. According to Mr. Steve Nelson of the Department 
of Administrative Services, Community 
Playgrounds would be the selected contractor to 
design, construct and equip the outdoor play spaces 
for the Child Care Center. According to Mr. Nelson, 
the reason that Community Playgrounds was the 
selected sole source contractor is because this firm 
(1) has specific expertise in designing and 
constructing childcare playgrounds, (2) developed 
the recent children's playgrounds in Civic Center 
Plaza, and (3) is familiar with the City's 
procedures. 

3. As identified above, the design, construction and 
equipment for the outdoor play space for the City 
Hall Child Care Center is estimated to cost 
$158,350 (See Item 8, File 99-0801 for the pending 
request for release of reserved funds). 

4. Mr. Nelson notes that although the interior 
construction and improvements for the City Hall 
Child Care Center will cost a total of $90,000, much 
of the work will be provided by the City's Bureau of 
Building Repair (BBR), such that less than S50.000 
will be contracted out to private contractors. 
Therefore, Mr. Nelson reports that in accordance 
with Section 6.05 of the City's Administrative Code, 
the Department is not required to and will not be 
competitively bidding the contracts needed for the 
interior construction and improvements. 

Recommendation: Approval of the proposed ordinance is a policy 

matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

33 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

Item 11 - File 99-0803 

Department: Recreation and Park Department (RPD) 

Item: Resolution authorizing and approving a management 

agreement by and between the City and County of San 
Francisco and U.S. Parking, Inc., for U.S. Parking Inc. to 
operate Kezar Parking Lot located at Stan3 r an and Frederick 
Streets. 



Location: 

Purpose of 

Management 

Agreement: 



No. of Sq. Ft. 
Description: 



Stanyan and Frederick Streets 



To provide for the operation of a City-owned surface parking 
lot with a capacity of 341 vehicles. 

107,440 square feet 

The proposed subject management agreement between the 
Recreation and Park Department (RPD) and U.S. Parking, 
Inc. would authorize U.S. Parking, Inc. to operate the Kezar 
Parking Lot, a City-owned property, accommodating 341 
vehicles at Stanyon and Frederick Streets. 

The current lessee, City Parking Company, has been 
operating the Kezar Parking Lot on a month-to-month basis 
since their 5-year lease agreement with the Recreation and 
Park Department expired on May 31, 1992. According to Mr. 
Chris Mack of the Recreation and Park Department, based 
on 12.5% of monthly revenues of up to $16,167 and 10.57% of 
monthly revenues over $16,167, City Parking Company paid 
the RPD approximately $60,000 annually in rent during 
Fiscal Year 1997-1998 under the existing month-to-month 
lease agreement. The budgeted annual rental payment to 
the City for Fiscal year 1998-1999 is $60,000, according to 
Mr. Mack. 



This subject resolution would authorize a management 
agreement, as opposed to a lease agreement. As noted above, 
under the existing lease agreement, the City Parking paid 
RPD rent in the form of a percentage of monthly gross 
revenues. Under the proposed management agreement, all 
parking revenues from the Kezar Parking Lot would be 
deposited daily into an account controlled by the City and, 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

34 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



Estimated Annual 
Revenues: 



from that account, RPD would pay U.S. Parking Inc. a fixed 
monthly management fee of $17,021 for the operation of the 
parking lot. Mr. Mack reports that, per the proposed 
management agreement, U.S. Parking would also provide 
approximately $55,000 in capital improvements to the lot 
including an attendant shelter, state-of-the-art ticket 
dispensing, card readers, and revenue collection/monitoring 
equipment. Under this management agreement, the City 
would keep all of the revenues instead of receiving a 
percentage of gross revenues. 



$240,000 ($20,000 per month) under existing rates. 
$492,288 ($41,024 per month) under proposed rates. 
(See Comment No. 2 below) 



Increase in Annual 
Revenues: 



$180,000 under existing rates. 

$432,288 under proposed rates, (see Comment No. 2 below) 



Term of Agreement: Five years, commencing on the first day of the month 
immediately following the Board of Supervisors approval of 
the proposed lease. In addition, on and after the 30-month 
anniversary of the effective date of the subject management 
agreement, RPD would have the right to terminate the 
subject agreement, with or without cause, with at least 180 
days written notice. 

Right of Renewal: None. 



Insurance 
Provision: 



U.S. Parking, Inc. would be required to maintain Garage 
Liability and Garage Keeper's Insurance with a limit of not 
less than $1,000,000, in addition to Workers Compensation, 
Comprehensive General Liability and Comprehensive 
Automobile Insurance. 



Comments: 



1. On November 10, 1998, the Department of Real Estate 
issued an Invitation for Bids (IFB) to operate the Kezar 
Parking Lot and received eight bids on December 17, 1998. 
The Attachment to this report, provided by the RPD, lists the 
eight companies that responded to the IFB and the bid 
submitted b} r each. The bid amounts represent the monthly 
management fee payable by RPD to the parking operator. As 
noted in the Attachment, US Parking, Inc. submitted the 
lowest monthly management fee bid of $17,021. 
BOARD OF SUPERVISORS 

BUDGET ANALYST 

35 



Memo to Finance and Labor Committee 

Ma}' 12, 1999 Finance and Labor Committee Meeting 



2. According to Mr. Mack, tbe subject management 
agreement would increase annual revenues from tbe Kezar 
Parking Lot by $180,000 annually from tbe $60,000 in 
revenue budgeted for FY 1997-98 to annual revenues of 
$240,000 based on existing parking rates, an increase of 300 
percent. This increase results simply because tbe RPD will 
receive all parking revenues and pay a management fee for 
operation of tbe parking lot instead of receiving a percentage 
rent based on a lease agreement that began in 1987 and 
expired in 1992. 

However, the RPD, has also submitted a proposed ordinance 
(File 99-0857, introduced May 3, 1999) that would 
substantially increase parking rates. Such parking rates 
have not been increased since 1991. If approved by the Board 
of Supervisors, the increase in revenue would be 
approximately $432,288 annually, or over 720 percent, from 
the $60,000 in revenue budgeted for FY 1997-98 to annual 
revenues of $492,288. 

Mr. Mack explains that the revenues to RPD from the 
proposed management agreement are estimated to be 
$41,024 per month or $492,288 per year, if separate future 
legislation is approved to increase the parking rates. 
According to Mr. Mack, RPD will provide improvements to 
the lot including re-surfacing, striping, and installation of 
bike lockers in the first year of the subject management 
agreement and that such improvements are estimated to cost 
$25,000. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

36 



*\ 



n *" 



Exhibit A 



KT7AP PAK K R1G LOT BID RESULTS 

December 17, 1998 



R&L C\ppCO\Ja.\ 



1. US Parian^ Inc. 




FsqV€3 


517,021.00 


2. City Parking Co. 


18.700.00 


Yes 


3. On-Line Parians 


19.551.00 


No 


4. DanasPirfcine 


19,710.61 


Yes 


5. Parian* Concern*. Inc. 


22,498.00 


No 


6. 'Pacific Park Manaeemem 


22,747.04 


Yes 


7. ABC Parfcin^THOR 


23,888.00 


Yes 


8. Chu Funs and Daniel Seid 


24.2S8.00 


Yes 



37 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



Item 12 - File 98-2026 

Department: 

Item: 



Amount: 
Source of Funds: 

Description: 



Public Utilities Commission (PUC) 

Resolution approving the issuance of up to $150,000,000 
in aggregate principal amount outstanding at any one 
time of Public Utilities Commission Commercial Paper 
Notes (Water Series) pursuant to Chapter 84 of Part 1 of 
the Municipal Code, in one or more series, for the purpose 
of financing and refinancing certain capital improvements 
related to the City's water system; approving the 
maximum interest thereon; and approving related 
matters. 

Up to $150,000,000 

Commercial Paper, to be repaid with San Francisco Water 
Revenue Bonds (see Item 13, File 99-0784, of this report 
to the Finance and Labor Committee) 

In June of 1998, the Board of Supervisors approved an 
ordinance (File 98-738) authorizing the procedures for the 
issuance by the PUC of Commercial Paper and other 
short-term indebtedness in anticipation of proceeds from 
the issuance of previously authorized but unsold revenue 
bonds. 

This subject resolution would authorize the PUC to issue 
up to $150,000,000 in Commercial Paper for the purpose 
of financing and refinancing certain capital improvements 
related to the City water system, to improve and expand 
the City's storm water and drinking water systems, as 
well as to pay for the costs of issuance and other related 
costs. 

Commercial paper is a short-term financing instrument 
used by both corporations and municipal issuers. San 
Francisco International Airport is the only City agency 
that has issued Commercial Paper to date, as previously 
approved by the Board of Supervisors in June of 1997 
(File 170-97-05). Commercial Paper is issued on an as- 
needed basis to meet short-term cash demands. In 
contrast to the 30-year bonds that are generally issued to 
finance the City's capital costs, Commercial Paper 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



38 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



maturities range from one to 270 days. According to Mr. 
Phil Arnold of the PUC, over the past 10 years 
Commercial Paper interest rates in California have 
averaged over 2 percent less than long-term bond interest 
rates. Commercial Paper can therefore be used as a 
short-term, low-cost source of construction financing. 

The subject Commercial Paper to be issued by the PUC 
would be repaid with proceeds from the sale of the San 
Francisco Water Revenue Bonds that would be authorized 
under Item 13, File 99-0784, of this report to the Finance 
and Labor Committee. In November of 1997, voters 
approved Proposition A, authorizing the City to issue 
$157,000,000 in Water System Reliability and Seismic 
Safety Revenue Bonds for the purpose of providing funds 
for acquiring and constructing reliability and seismic 
safety improvements to the City's water system, and 
Proposition B, authorizing the City to issue $147,000,000 
in Safe Drinking Water Improvement Revenue Bonds for 
the purpose of acquiring and constructing safe drinking 
water improvements related to the City's water system. 
The total authorized bond amount for the two issues is 
$304,000,000. 

Mr. Arnold states that the PUC expects to issue San 
Francisco Water Revenue Bonds, in an amount not to 
exceed $140,000,000, to repay the proposed Commercial 
Paper, by August of 2000. 

Attachment I, provided by the PUC. compares the 
financing costs of San Francisco Water Revenue Bonds 
with the issuance of up to $150,000,000 in Commercial 
Paper to the financing costs of San Francisco Water 
Revenue Bonds without the issuance of up to 
$150,000,000 in Commercial Paper. As shown in 
Attachment I. the issuance of the Commercial Paper 
would result in a reduction in the amount of San 
Francisco Water Revenue Bonds to be issued of 
$1,405,000, from $139,195,000 to $137,790,000 and a 
reduction in overall debt service because the interest 
rates for Commercial Paper will be 3.0 percent compared 
to an interest rate of 5.1 percent for the San Francisco 
Water Revenue Bonds (see Comment 1). 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

39 



Memo to Finance and Labor Committee 

Ma}' 12, 1999 Finance and Labor Committee Meeting 

A Letter of Credit from two banks, Landesbank 
Girozentrale and the State Street Bank and Trust 
Company, will provide security for the Commercial Paper. 
Under the Letter of Credit issued by the banks to the 
PUC, the banks will make principal and interest 
payments when they become due for any Commercial 
Paper that has been issued, and the PUC will reimburse 
the banks from additional Commercial Paper proceeds. 
As a result, the credit rating for the Commercial Paper 
will be based on the short-term credit rating of the banks 
issuing the Letter of Credit, rather than the PUC's credit 
rating. 

Approval of the subject resolution would also: 1) establish 
a maximum rate of interest for the Commercial Paper and 
for the Bank Notes of 12 percent annually, 2) approve 
various documents related to the issuance, sale and 
delivery of Commercial Paper and Bank Notes, and 3) 
authorize the Director of the Mayor's Office of Public 
Finance, the City Attorney, and all other appropriate 
officers, employees, representatives and agents of the City 
to take any necessary actions to provide for the issuance 
of the Commercial Paper. 

Comments: 1. Attachment II, provided by the PUC, contains a list of 

the capital project budgets, totaling $126,100,000, to be 
funded with San Francisco Water Revenue Bonds, which 
will be requested in the PUC's FY 1999-2000 budget. 

The following table, based on information provided by Mr. 
Arnold, details the debt service requirements for the San 
Francisco Water Revenue Bonds, based on estimated 
interest rates of 5.1 percent on the San Francisco Water 
Revenue Bonds and 3.0 percent on the Commercial Paper: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

40 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



San Francisco Water Revenue Bonds 



Debt Service Requirements 
Without With 
Commercial Commercial Debt Service 
Paper Paper Savings 

Principal $139,195,000 $137,790,000 $1,405,000 

Interest 
Payments $135.554.398 $134.186.145 $1.368.253 

Total Debt 
Service $274,749,398 $271,976,145 $2,773,253 

Annual Debt 
Service $9,158,313 $9,065,872 $92,442 

As shown on the table above, over a 30-year term, 
approximately $2,773,253 would be saved by issuing the 
Commercial Paper ($92,442 each year for 30 years). 

2. The proposed Commercial Paper would be sold on an 
as-needed basis to provide sufficient cash to finance the 
needed capital improvements prior to receipt of the 
proceeds from the sale of the above-noted San Francisco 
Water Revenue Bonds. Mr. Arnold reports that through 
July 31, 1999, the PUC tentatively plans to sell 
approximately $10,000,000 to $20,000,000 in Commercial 
Paper. The term and the interest rate of such 
Commercial Paper would be determined on the day of the 
sale, and would vary based on the PUC's cash needs and 
market conditions. Approval by the Board of Supervisors 
would not be required for each sale of Commercial Paper 
but, in accordance with Ordinance 98-738 previously 
approved by the Board of Supervisors in June of 1998, 
which authorized the procedures for the issuance of 
Commercial Paper by the PUC, the Director of Public 
Finance would approve each sale. 

3. The PUC selected a team of underwriters, Lehman 
Brothers/Charles A. Bell (Charles A. Bell is an MBE 
firm), following an RFP selection process in May of 1998. 
The PUC received six proposals, and selected Lehman 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



41 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

Brothers after evaluating the proposals based on the 
criteria specified in the RFP, including firm capability 
and experience, assigned project staff, and cost. The PUC 
selected two banks bidding together, Bayerische 
Landesbank Girozentrale and the State Street Bank and 
Trust Company, to offer Letters of Credit following a 
competitive bid in December of 1999. The PUC received 
three bids, and selected the bid with the lowest cost. 

4. According to Mr. Arnold the PUC's Commercial Paper 
program would not be backed bj 7 General Fund revenues 
and will not create any exposure to the General Fund. 
Mr. Dave Sanchez of the City Attorney's Office concurs 
with Mr. Arnold. 

5. The ordinance (File 98-738) outlining the procedures 
for the PUC's issuance of Commercial Paper, previously 
approved by the Board of Supervisors in June of 1998, 
limits the PUC's authorization to issue Commercial Paper 
to five years from the date of first issuance of Commercial 
Paper. According to Mr. Arnold, the PUC's Letter of 
Credit also has a five year term. As such, assuming no 
extensions or contract modifications, the PUC would have 
to sell the long term San Francisco Water Revenue Bonds 
in order to pay back the Commercial Paper no later than 
at the end of the five-year term. The PUC expects to sell 
the long-term San Francisco Water Revenue Bonds by 
August of 2000. 

6. Since the Commercial Paper issuance is to be repaid 
from San Francisco Water Revenue Bonds, this proposed 
resolution should only be approved if Item 13, File 99- 
0784 is also approved. 

Recommendation: Approve the proposed resolution, pending approval of 

Item 13, File 99-0784. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



:2-IS5= 12:S2 



P.U.C. PUHGSSZNG DEPT. 



415 4£7 5ZZT 



F .21/21 






Aprii 30, 1999 

To: James Edison 
From: Phil Arnold 



tojmptfon « s Interest rata on bonds @ 5J% po-year termV inro 

bond prcceeos @ 5 %; iTCSres: „ cn ZxnmerSl pane^* **** *^ 9S Cn 



Eased Ion current interest rates, Che sources and uses of the ~~ 

and hv.thout commercal pacer, to func the i999-?o ca. ™ ■-' ^ CSec bl 



ror the water enterprise wouid 'be as follows: 



ideal improvement prcgran 



Sstlmafd 9ourr~: ^ i_i safi 9 f ; P y Dr ,„ a =„ 
(With Commercal Pace-; 



Total Sources 

Underwriter's Discount 

Cost of Issuance 

Insurance 

Capitalized Interest (1 yr.) 

Surety (paid at cosine) 
Net Proceeds 

Commercial pace- issuance ccstr 
1 otal Construction Funds Available 



2127,790,000 

(564,520) 

(350,000) 

(1,253,579) 

(6,525,096) 
/17g.?r^ 

5125.202,792 
5125,100,000 



2^tt* SniTre< gnr I ^ nf = — rr^TM 

(Without 'Commercal Pacer) 



1 otal Sources 

Underwriter's Discount 
Cost of Issuance 

Insurance 

Capitalized Interest (2 yrs.) 

Surety Bond 
Net Proceeds 
Interest on Proceecs 
1 otal Construction F-jncs Avaiiacie 



J -MRtcncs.wpd 



S12S, 195,000 

(974,365) 

(250,000) 

(1,404,525) 

(12.551,25c) 

S 122, 722 ,459 

$126, 100,000 



iUTPL P.9J 



43 



Attachment II 



SAN FRANCISCO PUBLIC UTILITIES COMMISSION 

1999-2000 "Water Enterprise Capital Projects 
(Bond-funded) 



BlBBggfflgn, A - Svstem T? -liarmnv P-oiccts 

Bay Division Pipeline Improvements S 80 million 

Prestressed concrete pipeline replacement 5.7 million 

SCADA system 1 3.6 million 

City reservoir improvements 9.5 million 

Pump station improvements 5.6 million 

City Distribution Division - system improvcrncnis 15 3 million 

System reliability improvements 9.1 million 

Total 1999-2000 Proposition A Projects S67 j million 

EZQBgggjg n B • Water Quality Projects 

Ketch Hetchy Water Treatment Project S12-5 million 

Sunol Valley Water Treatment Plant 35.6 million 

Harry Tracy Water Treatment Plant 5.0 million 

Other water quaiity improvements 5.7 million 

Total 1999-2000 Proposition 3 Projects S58.8 milli on 

Total 1999-2000 Proposition A and B Projects S126.1 million 



KMRbondl.wpd 



TOTPL P. 01 



44 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



Item 13 - File 99-0784 

Department: 

Item: 



Amount: 
Source of Funds: 
Description: 



Public Utilities Commission (PUC) 

Resolution approving tbe issuance of up to $140,000,000 
aggregate principal amount of San Francisco Water 
Revenue Bonds for tbe purpose of financing reliability and 
seismic safety improvements and safe drinking water 
improvements related to the City's water s} r stem. 

Not to exceed 5140,000,000. 

San Francisco Water Revenue Bonds 

In November of 1997, voters approved Proposition A, 
authorizing the City to issue $157,000,000 in Water 
System Reliability and Seismic Safety Revenue Bonds for 
the purpose of providing funds for acquiring and 
constructing reliability and seismic safety improvements 
to the City's water system, and Proposition B, authorizing 
the City to issue $147,000,000 in Safe Drinking Water 
Improvement Revenue Bonds for the purpose of acquiring 
and constructing safe drinking water improvements 
related to the City's water s\ T stem. The total authorized 
bond amount for the two issues is $304,000,000. 

The subject proposed resolution would authorize the 
issuance of up to $140,000,000, out of the total voter- 
authorized bond amount of $304,000,000, in San 
Francisco Water Revenue Bonds for the purpose of 
providing funds for: (1) acquiring and constructing 
reliability and seismic safety improvements and safe 
drinking water improvements to the water system; (2) 
funding debt service reserves; and, (3) paying costs of 
issuance, including redemption premiums, and other 
related costs. Mr. Phil Arnold of the PUC, advises that 
these improvements will provide the City's three water 
treatment facilities with upgrades to improve water 
qualtiy, and upgrade the distribution system, pumping 
stations and treated water storage faculties for the City's 
water system. 

The precise amount of San Francisco Water Revenue 
Bonds that the PUC ultimately will issue is contingent on 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



45 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



approval of a companion resolution (Item 12, File 98- 
2026) in this report to the Finance and Labor Committee 
related to the issuance of up to $150,000,000 in 
Commercial Paper. Attachment I, provided by the PUC, 
details the sources and uses of the proposed San 
Francisco Water Revenue Bonds with and without the 
issuance of the related Commercial Paper. As shown in 
Attachment I, the issuance of the Commercial Paper 
would result in a reduction in the amount of San 
Francisco Water Revenue Bonds to be issued of 
$1,405,000, from $139,195,000 to $137,790,000 and a 
reduction in overall debt service because the interest 
rates for Commercial Paper will be 3.0 percent compared 
to an interest rate of 5.1 percent for the San Francisco 
Water Revenue Bonds, as explained below. 

The following table, based on information provided by Mr. 
Arnold, details the debt service requirements for the San 
Francisco Water Revenue Bonds, based on the estimated 
interest rate of 5.1 percent on the San Francisco Water 
Revenue Bonds and a 3.0 percent interest rate on the 
Commercial Paper: 

San Francisco Water Revenue Bonds 

Debt Service Requirements 
Without With 
Commercial Commercial Debt Service 
Paper Paper Savings 

Principal $139,195,000 $137,790,000 $1,405,000 

Interest 
Payments 135.554.398 134.186.145 1.368.253 

Total Debt 
Service $274,749,398 $271,976,145 $2,773,253 

Annual Debt 
Sendee $9,158,313 $9,065,872 $92,442 

As shown on the table above, over a 30-year term, 
approximately $2,773,253 would be saved by issuing the 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

46 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



Commercial Paper as proposed under Item 12, File 98- 
2026 ($92,442 each year for 30 years). 

Attachment II, provided by the PUC, provides a list of the 
capital improvement projects to be financed with the net 
proceeds from the San Francisco Water Revenue Bonds. 
The capital projects total $126,100,000 and will be 
requested in the PUC's FY 1999-2000 budget. 



Comment: 



1. The capital improvement expenditures in the amount 
of $126,100,000, discussed above, will be included in the 
PUC's proposed FY 1999-2000 budget, and would 
therefore be subject to appropriation approval by the 
Board of Supervisors. 



2. The debt service on the San Francisco Water Revenue 
Bonds would be repaid by Water Department revenues 
and would not be a cost to the General Fund. 



Recommendation: 



Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



kl 



Attachment I 



April 30, 1999 

To: James Edison 
From: Phil Arnold 



Assumptions: Interest rate on bonds @ 5.1% (30-year term); interest earnings on 
bond proceeds @ 5%; interest rate on commercial paper @ 3%. 



Based on current interest rates, the sources and uses of the proposed bonds, with 
and without commercial paper, to fund the 1999-00 capital improvement program 
for the water enterprise wouid be as follows: 



Estimated Sour ce and Uses of Revenue Bonds 
(With Commercial Paper) 

Total Sources $137,790,000 

Underwriter's Discount (964,530) 

Cost of Issuance (350,000) 

Insurance (1,358,879) 

Capitalized Interest (1 yr.) (6,635,096) 

Surety (paid at dosing) (178.702) 

Net Proceeds $128,302,793 

Commercial paper issuance costs (2.202. 793^ 

Total Construction Funds Available $126,100,000 



Estimated Sour ces and Uses of Revenue Bonds 
(Without Commercial Paper) 

Total Sources $139,195,000 

Underwriter's Discount (974,365) 

Cost of Issuance (350,000) 

Insurance (1,404,628) 

Capitalized Interest (2 yrs.) (12,561,258) 

Surety Bond „ (181.280^ 

Net Proceeds $123,723,469 

Interest on Proceeds 2.276.531 

Total Construction Funds Available $126,100,000 



HMRboncs.wpd 



TOTAL =.ai 



48 



Attachment II 



SAN FRANCISCO PUBLIC inTUITES COMMISSION 

1999-2000 Water Enterprise Capital Projects 
(Bond-funded) 



Proposition A - System Reliability Projects 
Bay Division Pipeline Improvements 
Prestressed concrete pipeline replacement 
SCADA system 
City reservoir improvements 
Pump station improvements 
City Distribution Division - system improvements 
System reliability improvements 

Total 1999-2000 Proposition A Projects 

Propositio n B • Water Quality Projects 

Hetch Hetchy Waier Treatment Project 
Sunol Valley Water Treatment Plant 
Harry Tracy Water Treatment Plant 
Other water quality improvements 

Total 1999-2000 Proposition B Projects 

Total 1999-2000 Proposition A and B Projects 



$ 8.5 million 

5.7 million 

13.6 million 

9.5 million 

5.6 million 
15.3 million 

9.1 million 
S673 million 



S12.5 million 

35.6 million 

5.0 million 

5.7 million 

S58.8 million 

S126.1 million 



HMRbondl.wpd 



TOTfiL P. 01 



49 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

Item 14 - File 99-0045 



Department: 
Item: 



Description: 



Retirement Board 

Ordinance amending Section 16.29-5 and adding 
Section 16.61-4 of the San Francisco 
Administrative Code concerning pre-tax treatment 
of buy backs of employee service time for the years 
the employee worked, but was precluded or not 
fully included in the City's Retirement System. 

The proposed ordinance would amend the City's 
Administrative Code to allow City employees who 
meet specific requirements to buy back service from 
the Employees Retirement System (ERS) on a pre- 
tax basis. A City employee would want to buy back 
service from the Retirement System because it 
would allow an employee to receive pension credits 
for all or a portion of their prior years of 
employment, that the employee was not fully 
included as part of the City's Retirement System. 
Under the proposed ordinance, the pre-tax basis 
would include both Federal and State Income 
Taxes. As a result, the proposed ordinance would 
provide a significant benefit for emploj r ees by not 
having to pay Federal or State Income Taxes prior 
to their retirement on the amount paid by the 
employees to the ERS for the Employees 
Retirement System contribution for the buyback 
service purchased by the employees. 

The proposed ordinance was drafted in response to 
a letter received by the City's Retirement System 
from the Federal Internal Revenue Service (IRS) in 
December of 1998. Ms. Clare Murphy of the 
Employee's Retirement System reports that the 
Employee's Retirement System petitioned the IRS 
for such a letter ruling in July of 1997 because 
previous IRS rulings on pre-tax buybacks did not 
address several of the specific buyback features of 
the Employee's Retirement System plan. Ms. 
Murphy notes that pre-tax buybacks for payroll 
deductions were authorized by the IRS through 
what are known as Private Letter Rulings for the 
first public retirement plans in 1995. Such pre-tax 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



50 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



buybacks were confirmed in 1997 Internal Revenue 
Tax law for all retirement plans. 

The proposed ordinance provides that in order to 
qualify for the proposed buy backs on a pre-tax 
basis, persons must be employees of the City and 
County of San Francisco, the San Francisco Unified 
School District or the San Francisco Community 
College District. According to Ms. Murphy, the 
City's pension plans currently extend to include 
employees from both the Unified School District 
and the Community College District. Ms. Murphy 
reports that approximately 27.000 San Francisco 
Unified School District, San Francisco Community 
College District and San Francisco City and County 
current employees are covered by the Employee's 
Retirement System plans. 

In accordance with the proposed ordinance, only 
payroll deductions that may be required to be paid 
into the Retirement System for (1) redeposits, (2) 
shortages and (3) prior sen-ice, including but not 
limited to temporary service, public service, 
military service and representative service, which 
is defined as the time during which an employee 
leaves the City's employment to become a union 
representative, would be eligible for the proposed 
deferred income tax program. Ms. Murphy explains 
that redeposits would be for those employees that 
return to work for the City and the school districts 
after monies were withdrawn from the City's 
Retirement System's plan because an employee 
initially left the City and school district 
employment. In addition, Ms. Murphy reports that 
shortages are a result of a period of time from 1959 
through 1998, when the City did not offer full 
Social Security benefits and allowed employees to 
select a level of employee contribution to the 
Retirement System up to the 7.5 percent or 8 
percent maximum level. The shortage pertains to 
those employees who did not select the maximum 
level. Prior service, according to Ms. Murphy, is 
defined as that period of time before an employee 
became a permanent City employee, and would 
include the period of time during which an 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



51 



Memo to Finance and Labor Committee 

Ma3 r 12, 1999 Finance and Labor Committee Meeting 

employee was (1) a temporary employee, (2) 
provided public service to another public entity, 
such as the State of California, other local 
California jurisdiction or Federal, non-military 
department, (3) was in the military service or (4) in 
representative service. Ms. Murphy further notes 
that, in accordance with IRS regulations, the 
proposed pre-tax provisions are not available to 
employees who wish to buyback their previous 
service through direct lump sum payments by 
check, and would only be available through 
automatic payroll deductions. 

The proposed ordinance states that the Retirement 
Board has the power to establish rules and 
procedures necessary to collect the employee's 
contributions for the prior service when the 
employee worked under the specified conditions 
listed above. According to Ms. Murphy, on March 9, 
1999 the Retirement Board adopted Pretax 
Buyback Policies and Procedures, which conform 
with the City's Charter and Administrative Code 
and the IRS Private Letter Ruling. 

In conformance with the IRS ruling, the proposed 
ordinance states that if an employee agrees to buy 
back their service, that employee must sign an 
irrevocable pa3rroll authorization form and that 
employees may not terminate such irrevocable 
payroll authorization before completion of the 
payments or termination of employment, through 
resignation, retirement or death. Ms. Murphy notes 
that the employee must agree to sign an 
irrevocable and legally binding payroll 
authorization agreement, which cannot be changed 
regardless of personal or financial hardship. 

Comments: 1. According to Ms. Alice Villagomez, the 

Memorandum of Understandings (MOUs) with the 
Service Employees International Union (SEIU) 
Locals 250, 535, 790 and 790 H-l, the Municipal 
Attorney's Association and the Municipal 
Executives' Association contain provisions which 
state that the Retirement System will attempt to 
obtain IRS approval to authorize the pre-tax 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

52 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



buyback of pension credits. In addition, the 
Municipal Attorney's Association (MAA) MOU 
states that the City shall promptly notify MAA 
when the IRS approval is secured and meet with 
MAA to discuss the procedure for MAA members to 
accomplish such pre-tax buyback of pension credits. 
Ms. Murphy notes that provisions of the proposed 
ordinance would not become part of employee 
MOUs. 

2. Ms. Murphy reports that there are 3,856 
employees that are currently buying back their 
service time on an after -tax basis. This means that 
for these 3,856 employees. Federal and State 
income taxes are deducted from their paychecks, 
prior to making their payments to the Employees 
Retirement System in connection with buying back 
their retirement service. If the proposed ordinance 
is approved, it is anticipated that all of these 3,856 
employees would immediately take advantage of 
the proposed change prospectively to buy back their 
service on a pre-tax basis, such that their payments 
to the Employee's Retirement System would be 
made before Federal and State Income Taxes are 
deducted from their paychecks. Such a change will 
result in an immediate savings to these employees 
of their Federal and State Income Taxes. 

3. In addition, as shown in the Attachment. Ms. 
Murphy reports that an additional 22,936 
"opportunities" exist for existing City and School 
District employees to buy back prior service time, 
redeposits or shortages. According to Ms. Murphy, 
the Employees Retirement System is defining an 
opportunity as a specific purchase of sen-ice or 
repayment situation. The Attachment reflects that 
each of these opportunities range in cost to the 
employee from a minimum of S100 to a maximum 
of $151,814. 

Ms. Murphy notes that the Retirement System is 
currently attempting to identify the number of 
employees that would be effected by these 22.936 
opportunities, since an employee may have more 
than one opportunity (i.e., one employee could have 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

53 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



a shortage opportunity and a prior service 
opportunity)- According to Ms. Murphy, she cannot 
currently estimate how many of these employees 
may wish to take advantage of the proposed change 
to buy back their previous service time on a pre-tax 
basis. The total outstanding cost of these buybacks, 
to these City and School District employees, is 
approximately $240 million. 

4. Ms. Murphy notes that depending on the 
individual employee's Federal and State Income 
Tax brackets, under the proposed ordinance the 
amount saved by each employee in Federal and 
State Income Taxes would offset between 20 
percent to approximately 39 percent of the 
employees' costs of purchasing back the Retirement 
System's service time. Ms. Murphy notes that the 
proposed plan would not eliminate, but would 
rather defer a portion of the taxes that would need 
to be paid, since when such employees retire, they 
would ultimately have to pay some Federal and 
State Income Taxes on the amounts contributed to 
the Retirement System for their buybacks. 
However, since most retired individuals may be 
receiving less income when they are retired than 
when they are employed, many of these employees 
will be taxed at a lower income tax rate when 
retired, and will thus be paying less income taxes 
than would otherwise occur. 

5. Ms. Murphy estimates that in the FY 1999-2000 
budget, the Retirement System will be requesting 
approximately $107,000 of Temporary Salary funds 
and $70,000 of additional funds for postage, 
reproduction, information services and legal 
support, for a total FY 1999-2000 cost of $177,000 
to implement this proposed ordinance. Ms. Murphy 
notes that although it is difficult to estimate future 
year costs, it is anticipated that the need for 
Temporary Salary and postage funds will continue 
at approximately the same level in future years, or 
approximately $115,000 annually. According to Ms. 
Murphy, such costs would be paid out of the 
administrative expenses of the Employees Pension 
Trust which is financed from employer retirement 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



54 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

contributions. However, Ms. Murphy notes that the 
City and the School Districts are not currently 
required to make employer contributions to the 
Employees Pension Trust Fund because the Fund 
is fully funded. According to Ms. Murphy, the 
Employees Pension Trust Fund has been fully 
funded since 1995 and is projected to be fully 
funded for approximately the next 15 years. 

6. Ms. Murphy reports that the Employees 
Retirement System is recommending that the City 
offer this additional benefit for employees because 
(1) currently pre-tax payroll deduction options are a 
prevailing feature of most of the 40 major 
California public retirement systems, (2) precluding 
employees from participating in the Employees 
Retirement System was the direct result of the 
City's employment practices between 1970 and 
1995 of not employing permanent staff that created 
a large number of long-term temporary employees 
who now have prior service opportunities, (3) it 
would provide significant Federal and State Income 
Tax savings for City and School District employees 
and (4) this employee benefit can be authorized at 
no immediate cost to the City, since it is the 
Employees Trust Fund which would pay all 
administrative expenses, and the Employees Trust 
Fund is fully funded for approximately the next 15 
years. 

Recommendation: Approval of the proposed ordinance is a policy 

matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

55 



MPY-0S-1999 13: 2? 



S.F. RETIREMENT SYSTEM 



415 554 1523 P.e2/B2 

Attachment 



Buyback Opportunity Statistics as of 2-24-99 



Type 


# in progress 


# Not yet 
purchased 


Minimum S J Maximum 
Cost 1 SCost 


To Be 
Researched 


1 




| 


Prior Service 


1437 


12017 


$ 100.00 | S 151,814.00 

1 


Approx. 
3000 












Redeposit 1 109 


1607 


S 100.00 1 S 88.669.00 




1 


I 




Shortage 1 2310 | 9312 I S 100.00 I $ 117,243.00 




1 1 1 


Total 1 3856 I 22936 j 



Range of Buyback Costs as of 2-24-99 



Cost 


Prior Service 


Redeposit 


Shortage 


1 


to S999 


3432 


557 


1563 


S1000to4999 


6074 


578 


1332 


S 5000 to 9999 


1459 


124 


814 


$ 10000 to 14999 


509 


80 


812 


$ 15000 to 19999 


225 


51 


782 


S 20000 to 24999 


112 


36 


746 


$ 25000 to 39999 


54 


56 


671 


S 30000 to 34999 


44 


25 


582 


S 35000 to 39999 


27 


16 


451 


S 40000 to 44999 


11 


15 


383 


S 45000 to 49999 


16 


23 


292 


S 50000 to 54999 


13 


16 


204 


$ 55000 to 59999 


14 


9 


166 


S 60000 to 64999 


10 


1 


145 


S 65K &. more 


17 


20 


339 


TOTALS: 


12017 


1607 


9312 



Total outstanding buybacks cost 5240,000,000 



TOTAL P. 82 



56 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

Item 15 - File 99-0737 



Department: 
Item: 



Description: 



Art Commission 

Ordinance amending Article XIII, Chapter 10, Part 
1 of the San Francisco Municipal Code 
(Administrative Code) by adding Section 10.117- 
123 thereto, establishing the Street Artists Fund as 
a Special Fund for the purpose of receiving all 
funds received by the San Francisco Arts 
Commission Street Artists Program, pursuant to 
Article 24 of the San Francisco Police Code, and 
providing for interest accumulation therein. 

An initiative ordinance (Proposition L) was 
approved on November 4, 1975 to allow the Art 
Commission to establish licensing authority and 
screening procedures and to collect fees for the 
Street Artists Program. In response, Mr. John 
Madden of the Controller's Office reports that the 
Controller's Office administratively established a 
separate special fund for the Street Artists 
Program, such that all revenues collected from the 
Street Artists Program are currently deposited in 
this special fund and all expenditures related to the 
Street Artists Program, subject to appropriation 
approval of the Board of Supervisors, are made 
from this special fund. Mr. Howard Lazar of the 
Arts Commission reports that the Street Artists 
Program is self-supporting through its fees and the 
Street Artists Program currently receives no 
monies from the General Fund. 

The proposed ordinance would formally establish a 
Special Fund designated as the Street Artists 
Fund, with the same requirements and restrictions 
as are currently in place. In addition, the proposed 
ordinance would credit accrued interest that 
accumulates in this Fund, if the Fund balance is in 
excess of $50,000 at the close of each business day, 
back to the Special Street Artists Fund. Currently, 
all interest earnings from the Street Artists Fund 
are credited to the City's General Fund. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

57 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



The proposed ordinance also states that all 
donations of money and other gifts (including 
grants, bequests, etc.) which may be offered to the 
Art Commission for the Street Artists Program 
purposes would be hereby accepted for such 
purposes and would be deposited in the Street 
Artists Special Fund. Currently, the Art 
Commission must receive approval from the Board 
of Supervisors to accept such donations of money, 
grants and other gifts. The proposed provision 
would override the requirement that the Art 
Commission must seek such approval from the 
Board of Supervisors to accept such gifts. 



Comments: 



Recommendation: 



1. Street Artists license fees are currently $87.50 
per quarter or $350 annually. In addition, the 
Street Artist application fee is currently $20. Mr. 
Lazar reports that the Art Commission last 
increased these Street Artist fees in 1991. 
According to Mr. Lazar, the Street Artists Program 
annually generates approximately $140,000 to 
$150,000 in revenues. 

2. Mr. Madden estimates that, if the proposed 
legislation is approved, the Street Artists Program 
Fund would receive an additional $3,000 to $5,000 
of revenue annually from the interest earnings on 
the account. Conversely, the City's General Fund 
would annually lose approximately $3,000 to 
$5,000 of interest earnings from this account. 

Approval of the proposed ordinance is a policy 
matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



Item 16 - File No. 99-0806 



Department: 
Item: 

Location: 
Purpose of Lease: 



Lessor: 
Lessee: 



San Francisco Redevelopment Agency (SFRA) 

Resolution authorizing a 50-year lease of land owned by 
the San Francisco Redevelopment Agency to GGA 1820 
Post, Limited Partnership (L.P.) 

1820 Post Street between Filmore and Webster Streets. 

Under the proposed lease, 2.45 acres of SFRA-owned land 
located at 1820 Post Street would be leased to GGA 1820 
Post Street, L.P., a non-profit organization, for the 
purposes of preserving the 72-unit housing development 
at 1820 Post Street with rent levels affordable to low 
income persons. 

SFRA 

GGA 1820 Post, L.P. 



Annual Rental Rate: - See Comment No. 4. 



Term of Lease: 
Right of Renewal: 
Description: 



50 years, commencing upon the 
proposed lease. 



effective date of the 



GGA 1820 Post, L.P. would have the option to extend the 
term for one additional period of 49 years. 

According to Mr. Sean Spear of the SFRA, the Golden 
Gate Apartments (the "Apartments") is a 72-unit housing 
development located at 1820 Post Street. The 
Apartments, together with 2.45 acres of land at 1820 Post 
Street, are currently owned by Golden Gate Apartments, 
L.P., a private firm. Mr. Spear advises that the Federal 
Department of Housing and Urban Development (HUD) 
currently subsidizes a portion of the existing mortgage on 
the Apartments in order for Golden Gate Apartments, 
L.P. to offer all 72 units at below market rental rates 
which are affordable to low income persons. HLTD also 
subsidizes portions of already below market rents for 24 
of the 72 housing units under its Section 8 Program, 
according to Mr. Spear. The Attachment, provided by the 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

59 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

SFRA, contains a list of the fair market rental rates for 
each of the 72 housing units and their associated below 
market rents after application of the HUD rental 
subsidies. 

In a letter dated March 5, 1998, Golden Gate Apartments, 
L.P. notified the Mayor's Office of Housing, in accordance 
with the City's Preservation Ordinance, that it intended 
to prepay the existing mortgage on the Apartments, opt- 
out of the above-noted HUD rent subsidy programs, and 
convert the Apartments from affordable housing to 
market rate housing. The City's Preservation Ordinance 
requires that the City be given 18 months notice before 
Golden Gate Apartments, L.P. could convert the 
Apartments to market rate housing, in order for the City, 
or its designated agent, to make an offer to purchase the 
Apartments and preserve them with rent levels which are 
affordable to low income persons. After a series of 
negotiations between SFRA and Golden Gate 
Apartments, L.P., Golden Gate Apartments. L.P. agreed 
to sell (a) the 72-unit housing development to GGA 1820 
Post Street, L.P. at a price of $5,119,333 and (b) the land 
at 1820 Post Street, consisting of 2.45 acres, to the SFRA 
at a price of $1,653,167. SFRA would then lease the land 
to GGA 1820 Post, L.P. 

Comments: 1. Because the SFRA intends to purchase the land at 

1820 Post Street with Tax Increment Funds in SFRA's FY 
1998-99 budget. Section 33433 of the California Health 
and Safety Code requires the Board of Supervisors to 
approve the lease of this property, which is the subject of 
this proposed legislation. 

2. The proposed lease contains the following provision 
that requires GGA 1820 Post Street. L.P. to preserve the 
Apartments with rent levels that are affordable to low- 
income persons: "Following the Agreement Date at least 
51 of the 72 residential units shall be occupied exclusively 
by households with incomes at or below 60% the Area 
Median Income." The proposed lease also states that "The 
Developer [GGA 1820 Post Street, L.P.] shall accept 
Project-Based Section 8 assistance from HUD for as long 
as it is offered by HUD. In the event HUD no longer 
provides Section 8 assistance, rents charged to households 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

60 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



with incomes above, at or below 60% of Area Median 
Income shall not exceed 30% of the greater of (a) 60% of 
Area Median Income or (b) the household's actual 



3. Mr. Spear advises that the SFRA intends to purchase 
the 2.45 acres of land at 1820 Post Street from Golden 
Gate Apartments, L.P. at the fair market value of 
$1,653,167, as determined by James Liska and 
Associates, a private appraiser retained by the SFEA. 
Mr. Larry Ritter of the Department of Real Estate (DRE) 
states that the SFRA may hire private appraisers to 
determine property values without review by the DRE. 
This purchase would be made on the effective date of the 
proposed lease. According to Mr. Spear, GGA 1820 Post 
Street, L.P. intends to purchase the 72-unit housing 
development at 1820 Post Street from Golden Gate 
Apartments, L.P. on the effective date of the proposed 
lease. 

4. As of the writing of this report, the SFRA had not 
provided the Budget Analyst with sufficient information 
regarding the annual rental rate payable by GGA 1820 
Post Street, L.P. to the SFRA. Mr. Spear advises that the 
SFRA will present such information at the Finance and 
Labor Committee on May 12, 1999. Because sufficient 
information regarding the annual rental rate payable by 
GGA 1820 Post Street, L.P. to the SFRA could not be 
provided to the Budget Analyst prior to the issuance of 
this report, the Budget Analyst considers approval of this 
resolution to be a policy matter for the Board of 
Supervisors. 

Recommendations: In accordance with Comment No. 4, the proposed 

resolution is a policy matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

61 



Attachment 1: Rent Schedule 





Total 


Market Area 


Actual 


Unit 


Number of 


Rent for 


Amount of 


Size 


Units by 


Comparable 


Rent Paid by 




Jype 


Unit 


the Tenants 


Obr 


5 


$300 


5176-5602 


lbr 


14 


51.000 


568-5676 


2br 


26- 


51.200 


548-5301 


3br 


17 


51.500 


596-5393 


4br 


10 


51.725 


5^11-5986 


TOTALS 


72 


-- 


-- 



Attachment 



*Note thai one 2br unit is occupied by the Property Manager and will not receive a 
subsidy (no rent is collected for this unit). 



62 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

Items 17 and 18 - File 99-0443 and File 99-0444 



Department: 



Item: 



Description: 



Department of the Environment (DOE) 
Public Utilities Commission (PUC) 

Ordinance amending Part I of the Municipal Code 
(Administrative Code) 

File 99-0443 

The proposed ordinance would add a new chapter, 
Chapter 82, Sections 82.1 to 82.7 to the City's Municipal 
Code (Administrative Code) which establishes resource 
efficiency requirements, including low-flow toilets and 
showerheads, efficient light fixtures, indoor air quality 
measures, recyclable storage and construction and 
demolition debris management, for City-owned facilities 
and faculties leased by the City. 

The proposed ordinance would assist the City in fulfilling 
Statewide goals, including the reduction of the amount of 
solid waste disposed in landfills, promoting more efficient 
City buildings that consume less electricity, water and 
other resources and the reduction of the waste materials 
generated in the demolition and construction of City- 
owned buildings. All of these goals would assist the city 
in meeting some of the objectives of the City's 
Sustainability Plan. The City's Sustainability Plan was 
adopted by the Board of Supervisors in July of 1997, and 
lays out long-term goals for the City in the areas of 
environmental conservation, community development and 
economic growth. 

The requirements imposed under the proposed ordinance, 
detailed below, would apply to City-owned buildings 
occupied by City Departments, buildings and space within 
buildings leased by a City department from a private 
lessor, but only where the City is responsible for utilities, 
and City-owned buildings with private tenants under new 
leases (leases executed 90 days or more after the effective 
date of the ordinance). The requirements imposed under 
the proposed ordinance would also apply to those City 
construction projects with a total project cost of $90,000 or 
more that also require a building permit. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

63 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



The following is a summary of the requirements under the 
proposed ordinance: 

Water Conservation 

Presently, under a 1994 PUC mandate, all showerheads 
in City-owned buildings must not use more than 2.5 
gallons of water per minute; all faucets must have 
aerators (except hospitals); and all toilets must not use 
more than 3.5 gallons of water per minute. According to 
Ms. Kim Knox of the PUC. all non-City buildings were 
required by the PUC to be retrofitted to meet the same 
regulations by March 1, 1999 in order to get a 33 percent 
lower rate on their water bill. 

Under the proposed ordinance. City departments must (a) 
at the time of major remodeling, when a water drainage 
system is substantially altered, modified or renovated or 
(b) by June 30, 2005, replace all toilets with low-flow 
toilets (using no more than 1.6 gallons of water per flush) 
and showerheads (using no more than 1.5 gallons of water 
per minute). The PUC would be required to award 
outside contracts for the purchase and installation of such 
toilets and showerheads, and establish a procedure with 
the Department of Public Works (DPW) for installation. 

Attachment I, provided by Ms. Kimberly M. Knox of the 
PUC, details the estimated cost savings over the next 15 
years of installing the toilets required under the 
ordinance in City-owned buildings and leased building 
where the City pays for water consumption, and also 
details the cost savings that could be realized at fire 
stations and public swimming pools in the City by 
installing water-efficient shower heads. As shown on 
Attachment I, the City would save approximately 
$415,682, net of costs, over the next 15 years of the 
program by installing water-efficient toilets m City-owned 
buildings, and would also save approximately $101,111, 
net of costs, over the next 15 years of the program by 
installing water-efficient toilets in property leased by the 
City where the City pays for water consumption. 
Therefore, the City could save a total of $516,793 over the 
next 15 years by installing water-efficient toilets. 
Attachment I also details the estimated cost savings of 
installing water-efficient shower heads in City fire 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

64 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



stations and public pools, a total of $87,757 over tbe next 
15 years. According to Ms. Knox, the net savings over the 
next 15 years would be $80,407, after subtracting the cost 
of installing 490 low-flow shower heads ($7,350, at a cost 
of $15 each). 

Energy Conservation 

According to Ms. Danielle Dowers of the PUC Bureau of 
Energy Conservation, City departments are presently 
encouraged by the PUC to be in compliance with the 
provisions of the State's Title 24 regulations, which 
prescribe requirements related to energy conservation 
such as energy-efficient heating, ventilation and air 
conditioning (HVAC) systems and fighting systems. The 
City does not impose a separate energy conservation 
requirement. Neither the City nor the State conducts 
inspections to determine Title 24 compliance 

Under the proposed ordinance, City departments would 
be required to use certain types of energy efficient fight 
fixtures and exit signs, as specified by the ordinance or 
State law, whichever is more stringent. For example, 
City departments would be required to use light-emitting 
diode-type (LED) signs, which consume less electricity, 
when installing or replacing exit signs. 

Attachment II, provided by Ms. Dowers of the PUC, 
details the cost savings for installing LED exit signs, 
improved fluorescent fighting and outdoor fighting 
controls. As shown in Attachment II, the improved 
fluorescent fighting would result over the next 15 years in 
a total cost of $150,000, a total savings of $1,014,880 and 
a net savings of $864,880 to the City. Aggregate numbers 
are not available for the LED lighting and outdoor 
fighting controls, but as shown in Attachment II, each 
installation would result in a net savings to the City over 
the next 15 j'ears. 

Air Quality 

Within 90 days of the effective date of this proposed 
ordinance amendment, DOE would be required to assist 
City departments in developing indoor air quality 
maintenance plans. For example, DOE wold provide 
guidelines on procedures for inspecting and maintaining 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

65 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



HVAC systems. According to Ms. Francesca Vietor of 
DOE, there would be no additional costs or savings to the 
City for this measure. 

Fluorescent Lamp Recycling 

City departments would be required to recycle all 
discarded fluorescent lamps. According to Ms. Barbara 
Bernardini of the Solid Waste Management Program, this 
requirement would result in a net additional cost of 
approximately $2,000 to the City each year, or 
approximately $30,000 over the next 15 years. 

Storage of Recvclables 

City departments would be required to secure space for 
recycling areas equal to the space set aside for storage of 
refuse. According to Ms. Bernardini, this requirement 
would not result in any net additional costs or savings to 
the City 

Construction and Demolition Debris 

Presently, there are no City requirements related to the 
disposal of construction and demolition debris, according 
to Ms. Bernardini. 

The proposed ordinance would require that all City 
construction projects, with total projected costs of $90,000 
or more at City-owned facilities and at space leased by the 
City under new or existing leases, minimize, reuse and 
recycle construction and demolition debris. The proposed 
mandates include requiring the construction contractor to 
develop and implement programs for on-site or off-site 
recycling of materials such as asphalt, concrete, rocks and 
sand. Additionally, the proposed ordinance would allow 
the Director of DOE to grant exemptions to any 
requirement that creates an unreasonable burden on a 
project or department. According to Ms. Bernardini, this 
requirement would not result in any net additional cost to 
the City. 

File 99-0444 

The proposed ordinance, amending Part I of the 
Municipal Code (Administrative Code) by adding Section 
82.8 to Chapter 82, would create a pilot project to 
demonstrate innovative construction techniques, such as 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

66 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



passive solar heating, building design that takes 
advantage of sunlight for office illumination, natural 
ventilation systems, building materials and other 
resource-efficient methods in the construction of selected 
City-owned facilities and faculties leased by the City. 

The proposed ordinance would create a task force of 
representatives from the following departments to select 
pilot projects: 

• Department of the Environment 

• Department of Pubhc Works 

Bureau of Architecture 

Bureau of Construction Management 

• Pubhc Utilities Commission 

Customer Service Bureau 
Bureau of Energy Conservation 

• Department of Administrative Services 

Solid Waste Management Program 

• Department of Building Inspection 

Within 90 days of the effective date of the proposed 
ordinance, the City departments listed in Attachment III 
would be required to identify at least one project currently 
planned which could be selected by the task force as a 
pilot project. According to Ms. Vietor, it is expected that 
one to three projects would be selected for FY 1999-2000 
and a total of five to seven projects for FY 2000-2001. 

The proposed ordinance requires revenue-generating City 
departments to fund pilot projects from their own revenue 
and General Fund supported departments to submit 
requests for funding from the General Fund to the Board 
of Supervisors. DOE would attempt to identify other 
pubhc and private sector funding for the remaining pilot 
projects. 

The proposed ordinance requires that, for any unfunded 
pilot projects for FY 2000-2001, the Bureau of 
Architecture would submit funding requests, coupled with 
cost-benefit projections, to the City's Capital 
Improvement Advisory Committee by January 31, 2000. 
Lastly, the Bureau of Architecture would be required to 
submit to the Board of Supervisors, within three years of 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

67 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

the effective date of the proposed ordinance, a report on 
the success of the pilot projects. 

Comment: 1. According to Ms. Vietor, DOE is requesting a new 

position to administer the energy efficiency programs and 
pilot projects resulting from the two ordinances, at a cost 
of approximately $82,443 per year in salary and fringe 
benefits. Ms. Vietor states that this position has been 
approved by the Commission on the Environment as part 
of DOE's proposed FY 1999-2000 budget. If the position is 
also approved in the Mayor's FY 1999-2000 budget it 
would be subject to appropriation approval by the Board 
of Supervisors. 

2. As discussed above, the following table summarizes 
the estimated costs and benefits of the proposed 
ordinance, Item 17, File 99-0444, over the next 15 years: 

Additional Estimated Costs and Savings to 
the Citv over the Next 15 Years 

Net 
Costs Savings Savings 

Water Conservation 

Low-flow toilets $75,255 $592,048 $516,793 

Low-flow shower 

heads 7.350 87,757 80,407 

Electricity Conservation : 
Improved fluorescent 

lighting 150,000 1,014,880 864,880 
Fluorescent lamp 

recycling 30.000 (30.000) 

Total $262,605 $1,694,685 $1,432,080 

LED Exit Signs 

(Per Fixture) $50 $443 $393 

Improved outdoor floodlights 

(average per fixture) $20 $859 $839 

In cases where the PUC was unable to provide estimates 
of the aggregate number of devices that would be 
replaced, the costs and benefits cited are per fixture. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

68 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

As shown in the table above, the City will realize a net 
estimated savings of $1,432,080 with the installation of 
low-flow toilets, low-flow shower heads and improved 
fluorescent lighting and the recycling of fluorescent lamps 
over the next 15 years. In addition, each light-emitting 
diode (LED) exit sign installed will result in a savings of 
$393 and each improved outdoor floodlight installed will 
result in an average savings of $839 over the next 15 
years. 

Indoor Air Quality 

According to Ms. Vietor, these requirements will not 
result in any net additional costs or savings to the City. 
Ms. Vietor states that the potential benefits include 
increased City employee health and productivity. 

Fluorescent Lamp Recycling 

According to Ms. Bernardini, this requirement would 

result in an additional cost of approximately $2,000 per 

year to the City, or a total of $30,000 over the next 15 

years. 

Recyclable Storage 

According to Ms. Bernardini, this requirement would not 

result in any net additional costs or savings to the City. 

Construction and Demolition Debris Management 
According to Ms. Bernardini, this requirement would not 
result in any additional cost to the City. 

3. As described above, Item 18, File 99-0444, does not, in 
and of itself, result in direct costs to the City. However, 
the costs of pilot projects will be subject to future 
appropriation decision by the Mayor and Board of 
Supervisors. According to the office of the sponsor of this 
legislation, the Mayor's proposed capital budget for FY 
1999-2000 now being considered by the Capital 
Improvements Advisory Committee includes $100,000 for 
a pilot project. 

Recommendation: Approval of the proposed ordinances is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

69 



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71 



Attachment I 
Page j of 3 



Estimated Savings on Showerheads in Two of Biggest Users of Showerheads-Fire Stations and Pools 



^^^^JTWBWl^Mliff! 8 Wl I5fti! v p"' i "° s 




Fire Station 

40 Fire Stations 1 400 


100 I 36.500 I J264 
4.000 | 1.460.000 | $10,540 


S.-'-l 
$31,620 



1 . According to the Fire Department. San Francisco has forty stations 

2 An estimate was made that on an average day, a total of ten showers per day were made by firefighters on duly 

3. Currently, almost every showerhead in municipal buildings uses 2 5 gallons per minute With the installation 
of 1.5 gallon per minute showerheads. the department would be saving 1 gallon per minute or 10 gallons 

per the average 10 minute shower. 

4. Yearly savings is calculated at $5 40 per cd. As a department that receives its funds from the Genera) Fund. 
the Fire Dept. is only changed for sewer at $5.40 per ccf. Since fire stations are open 365 days per year. 

the yearly savings was calculated at 365 days 

5. The average life of a showerhead is three years The average cost of a showerhead is $5-$15. 
Most maintenance people could install a showerhead 





Dair/.Savings 


Savings irvGaflorts 


fiCeanyjft 
JSrvSfS 


M^vipQS'overryl 
DfiaoCShoweSSS! 


Pool 

9 Public Pools 1 


120 
1080 


1200 
10800 


288.000 
2.592.000 


$2,079 
$18,712 


$6,237 
$56 137 



I.The San Francisco Telephone Book lists nine public pools. 

2. An estimate was made that on an average day. a total of 120 showers per oay were made by visitors 
to the pool, including neighbonng high schools' swim teams 

3 Currently, almost every showerhead in municipal buildings uses 2.5 gallons per minute With the installation 
of 1 .5 gallon per minute showerheads. the department would be saving 1 gallon per minute or 10 gallons 

per the average 10 minute shower. 

4 Yearly savings is calculated at $5 40 per ccf. As a department that receives its funds from the General Fund. 
Rec and Park is only charged for sewer at $5 40 per ccf It was estimated the pools were open to the 

public 240 days per year. 

5. The average life of a showerhead is three years. The average cost of a showerhead is $5-$15. 

Most maintenance people could install a showerhead 



72 



nHY-ur-iyyy ii>:^t> 



SF ENERGY CONSERVATION 




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Attachment II 



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73 



Attachment III 



City Departments required to submit Projects for consideration: 

San Francisco International Airport 

Department of Public Health 

Department of Human Services 

Department of Parking and Traffic 

Department of Real Estate 

Depatment of Public Transportation 

Fire Department 

Mayor's Treasure Island Project Office 

Police Department 

Public Utilities Commission 

Recreation and Park Department 

San Francisco Public Library 

War Memorial and Performing Arts Center, Asian Art Museum of San 

Francisco, and Fine Arts Museum of San Francisco 
Port of San Francisco 
Sheriffs Department 



74 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 

Item 19 - File 99-0732 



Note: This item was continued by the Finance and Labor Committee at its meeting 
of May 5, 1999. 



Department: 
Item: 

Amount: 
Source of Funds: 
Description: 



Municipal Railway (Muni) 

Release of reserved funds in the amount of $468,862 to 
partially fund the Muni Electrical Improvements Project. 

$468,862 (see Comment) 

Federal Surface Transportation Funds 

In October of 1992, the Board of Supervisors approved a 
resolution authorizing the Public Utilities Commission 
(PUC) to apply for, accept and expend $1.2 million of Federal 
Surface Transportation Funds and $300,000 of local and 
regional matching funds, for a total of $1.5 million for the 
design and rehabilitation of MUNI's fixed facilities 
(Resolution No. 907-92, File 94-92-8). That $1.5 million 
grant represented a portion of Muni's overall $7.5 million 
Metro Subway Modifications Project. Planned modifications 
associated with this Project included alterations to the 
subway, surface and maintenance systems to accommodate 
larger light rail vehicles (LRVs) than were previously in 
service in the Muni fixed rail system. 

Of the total $1.5 million authorized in October of 1992, 
$1,273,862 was placed on reserve for capital improvement 
projects, pending the selection of contractors and submission 
of cost details. 1 According to Mr. Jerry Levine of Muni, since 
the initial reserve, the Board of Supervisors has approved the 
release of $805, 000 2 of the total original reserve of 
$1,273,862, leaving a balance remaining on reserve of 
$468,862 (see Comment). 



1 Mr. Levine explains that the reserve balance of $468,862 was not needed until the present time 
because final analyses of necessary electrical modifications for the new LRVs had not been 
completed. 

2 These funds were applied towards Muni's Dynamic Envelope Improvements which made various 
modifications to LRV maintenance and storage facilities to accommodate the new, larger LRV 
vehicles. The Dynamic Envelope Project is also a component of the Metro Subway Modifications 
Project. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 



75 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



Mr. Levine explains that the subject request of $468,862 
would provide partial funding for Element I of the Muni 
Metro $6.5 million Electrical Improvements Project. 
Element I would fund preliminary engineering, design and 
construction support necessary to upgrade electrical systems 
within the Muni Metro Tunnel to be consistent with the 
technology of the new light rail vehicles (LRVs), including 
the replacement of an outdated emergency telephone system. 
According to Mr. Levine, Element I is budgeted at $608,363 
and would be financed by this subject request of $468,862 
currently on reserve as well as $139,501 of previously 
allocated funds. Attachment I, provided by Muni, contains 
the estimated project elements and costs for the Muni Metro 
Electrical Improvements including the Element I costs of 
$608,363. 



Budget: 



A summary budget provided by Muni for Element I of the 
Electrical Improvements is as follows: 



Muni Labor (Preliminary Engineering, 
Design, Construction Support) 

Equipment/Construction (Replacement 
Of Emergency Telephone System) 



$528,363 



80.000 
$608,363 



Attachment II, provided by Muni, contains the budget details 
to support this budget of the Muni in-house engineering staff 
of $528,363 as well as the emergency telephone system costs 
of $80,000. 



Comment: 



According to Mr. Levine, the subject release incorrectly 
requests $423,862 as the amount to be released. This 
amount resulted from data transposition and arithmetic 
errors. Mr. Levine reports that the correct amount to be 
released is $468,862 which is the balance remaining on 
reserve. 



Recommendation: 



In accordance with the above Comment, approve the release 
of reserved funds of $468,862. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



76 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



r /7 



">-v 

Harvey M. Rose 



/ ^^-^ 



cc: Supervisor Yee 

Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

77 



Attachment I 



Public Transportation Department 
Muni Metro Electrical Improvements Project 

Estimated Project Elements and Costs 



Element I 

Muni Labor 

Preliminary Engineering/ Design/ 
Construction Support 

Equipment/ Construction 

Replacement of Emergency Telephones 

Element II 

Muni Labor 

Detailed Design/ Construction Support 

Equipment/ Construction 

Replacement of Gap Breakers 
Replacement of Emergency Lighting 
Replacement of Ambient Lighting 

Replacement of Emergency Power 
Replacement of Fire Alarm Systems 

Replacement of Signal Bancries 
Replacement of Emergency Signage 
Replacement of Receptacles, as needed 



$528363 



$80,000 



T/t J 7(3 



S75 1,637 
Sl.600,000 

$1,350,000 
S2.190.000 



Subtotal: 



S6p00,00 



78 




Attachment II 
Page 1 of 3 



79 



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MUNICIPAL RAILWAY FIRE PHONES 



LOCATION 



Lenox 

West Portal 

Forest Hills 

Castro 

Church 

Duboce 

Van Ness 

Civic Center 

Powell 

Montgomery 

Embareadero 

MMT 

CECC 



DTIS TECHNICIAN TIME 100 Hrs. 
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TOTALS 





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$7,995 
$5,390 
$5,390 
$5,390 
$5,390 
$1,500 
$1,500 
$1,500 
$1,500 
$1,500 
51.500 
$8,400 
S 1.500 



$9,000 
$57,455 



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$8,300 
$1,660 



$9,960 



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22:21 666T-90-AbW 




City and County of £an Francisco 

Meeting Minutes 

^Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B. 

Goodlett Place 

San Francisco, CA 

94102-*689 



Wednesday, May 19, 1999 



10:00 AM 
Regular Meeting 



City Hall, Room 263 



Members Present: Sue Bierman, Tom Ammiano. 
Members Absent: Leland Y. Yee. 



Meeting Convened 

The meeting convened at 10:04 a.m. 

REGULAR AGENDA 



990761 [Hazardous Materials and Hazard Waste Fee Amendment) 

Ordinance amending Health Code by amending Sections 1 176, 1191 and 1204 to provide for changes in the 

fees charged by the Department of Public Health for various services related to hazardous materials and 

hazardous waste beginning in the fiscal year 2000. (Department of Public Health) 

4/19/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Sue Cone, Department of Public Health; Harvey Rose, Budget Analyst; 

Supervisor Ammiano ; Doug Kern, Chair, Hazardous Materials Advisory Committee. 

RECOMMENDED by the following vote: 

Ayes: 2 - Bierman, Ammiano 

Absent: 1 - Yee 



990785 [Appropriation, Airport Commission) 

Ordinance appropriating $143,500,000, Airport Commission, of San Francisco International Airport Bond 
proceeds-issue 24 to professional services, interest expense, and a capital improvement project for the 
renovation of the North Terminal, and construction of a new parking facility, concession facility, and museum 
space for fiscal year 1998-1999; placing $143,500,000 on reserve. (Controller) 

(Fiscal impact.) 

4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst. Jon Ballesteros, Airport. 

RECOMMENDED by the following vote: 

Ayes: 2 - Bierman, Ammiano 

Absent: 1 - Yee 



City and County of San Francisco 



Printed at 10.09 AM on 6Z///99 



Finance and Labor Committee 



Meeting Minutes 



May 19, 1999 



990917 (Appropriation, Airport] 

Ordinance appropriating $57,1 1 1,485, Airport Commission, of various Bond fund balances and interest earned 
to fund capital improvement projects, including construction of the new underground West Field Detention 
Pond, the Concourse H/Airtrain Station, and other approved infrastructure projects in the Airport's capital plan, 
for fiscal year 1998-1999. (Airport Commission) 

(Fiscal impact.) 

5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Jon Ballesteros. Airport. 

RECOMMENDED by the following vote: 

Ayes: 2 - Bierman, Ammiano 

Absent: 1 - Yee 



990798 [Building Inspection Commission Appeals) 

Ordinance amending Administrative Code by adding Chapter 77 and amending Building Code by adding 
Section 105.8 to implement the Charter- mandated appellate authority of the Building Inspection Commission, 
to provide that appeals heard by the former Abatement Appeals Board shall be heard by the Commission, and 
to authorize an exemption from or refund of appeal fees under specified circumstances, amending Table 1-K 
of the Building Code to establish Building Inspection Commission Appeal Fees. (Department of Building 
Inspection) 

(Adds Administrative Code Chapter 77; adds Building Code Section 105.8 and Table 1-K) 

4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; William Wong, Department of Building 

Inspection; Supervisor Ammiano. 

RECOMMENDED by the following vote: 

Ayes: 2 - Bierman, Ammiano 

Absent: 1 - Yee 



990809 [Reserved Funds, PUC/Dept of Administrative Services] 
Supervisor Yee 

Hearing to consider release of reserved funds, $91,400 (Public Utilities Supplemental Appropriation. File No. 

990245), and $464,880, (Department of Administrative Services Fiscal Year 1998-1999 Budget), to defray 

expenses related to the reuse of space at 875 Stevenson. 

4/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst, Tony DeLucchi, Real Estate Department; 

Supervisor Ammiano. Release of funds approved as requested. 

APPROVED AND FILED by the following vote: 

Ayes: 2 - Bierman, Ammiano 

Absent: 1 - Yee 



City and County of San Francisco 



Printed at 10:09 AM on 6/1 1/99 



Finance and Labor Committee 



Meeting Minutes 



May 19, 1999 



990853 [Roof Equipment License Agreement] 

Resolution authorizing a retroactive roof equipment license extension agreement for 555 California Street for 
the Department of Telecommunication and Information Services. (Real Estate Department) 
4/28/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Tony DeLucchi, Real Estate Department; 
Supervisor Ammiano. 
RECOMMENDED by the following vote: 

Ayes: 2 - Bierman, Ammiano 

Absent: 1 - Yee 



990856 [Lease of Real Property] 

Resolution authorizing the lease of real property at 1 60 South Van Ness for the Department of Human 
Services. (Real Estate Department) 

(Fiscal impact.) 

4/28/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Tony DeLucchi. Real Estate Department; Rose 

Chow, Department of Human Services; Supervisor Ammiano.. 

RECOMMENDED by the following vote: 

Ayes: 2 - Bierman, Ammiano 

Absent: 1 - Yee 



990902 [Lease of Property] 

Resolution approving extension and second modification of commercial lease for Parcel No. 2 at the Moscone 

Center Garage (257 Third Street between Folsom and Howard Streets). (Real Estate Department) 

5/4/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Tony DeLucchi, Real Estate Department. 

RECOMMENDED by the following vote: 

Ayes: 2 - Bierman, Ammiano 

Absent: 1 - Yee 



990908 |Lease of Real Property] 

Resolution authorizing a lease of real property at 1975-1999 Bryant Street for the Department of Parking and 

Traffic. (Real Estate Department) 

5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Tony DeLucchi, Real Estate Department; 

Supervisor Ammiano. 

RECOMMENDED by the following vote: 

Ayes: 2 - Bierman, Ammiano 

Absent: 1 - Yee 



City and County of San Francisco 



Printed at 10:10 AM on 6/11/99 



Finance and Labor Committee 



Meeting Minutes 



May 19, 1999 



990909 [Renewal, Long Term Provisional Appointments] 

Resolution approving the renewal of provisional appointments through December 31, 1999, for employees in 

classes for which no eligible list exists and who have been employed m the class more than three years, 

pursuant to San Francisco Charter Sectionl0.105 and upon certification by the Human Resources Director 

that, for reasons beyond her control, the Department has been unable to conduct examinations for these 

positions. (Department of Human Resources) 

5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Linda Marini, Department of Human 

Resources; Supervisor Ammiano ; Leslie Abbott, Local 21. 

RECOMMENDED by the following vote: 

Ayes: 2 - Bierman, Ammiano 

Absent: 1 - Yee 



990918 [Water Rates) 

Ordinance approving revised schedule of service fees to be charged by the San Francisco Public Utilmes 
Commission to retail water customers in San Francisco and suburban areas. (Public Utilities Commission) 

(Fiscal impact; SUBSTITUTED by Public Utilities Commission 5/10/99 bearing same title.) 

5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. With direction to report back to Board May 24, 1 999 

5/10/99, SUBSTITUTED 

5/10/99, ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Ammiano; Andy Moran, General 

Manager, Public Utilities Commission. 

RECOMMENDED by the following vote: 

Ayes: 2 - Bierman, Ammiano 

Absent: 1 - Yee 



990924 [Water Rates) 

Ordinance approvmg revised schedule of rates to be charged by the San Francisco Public Utilities Commission 
for water service to its suburban resale customers. (Public Utilities Commission) 

(Fiscal impact.) 

5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee With direction to report back to Board May 24, 1 999. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Ammiano; Andy Moran, General 

Manager, Public Utilities Commission. 

RECOMMENDED by the following vote: 

Ayes: 2 - Bierman, Ammiano 

Absent: 1 - Yee 



ADJOURNMENT 

The meeting adjourned at 1 1:00 a.m. 



Cily and County of San Francisco 



Printed at 10:10 AM on 6/1 1 799 



Public Library,Gov't Info. Ctr., 5 th Fir. 
Attn: Susan Horn 



0.Z61- 



ij¥\ 



CITY AND COUNTY 




OF SAN FRANCISCO 
/ 



BOARD OF SUPERVISORS 



BUDGET ANALYST 



1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



TO: , Finance and Labor Committee 

FROM: .Budget Analyst 

SUBJECT: May 19, 1999 Finance and Labor Committee Meeting 

Item 1 - File 99-0761 



May 14, 1999 D °CUMENTS DEPT. 
MAY 1 8 1999 
SAN FRANCISCO 



PUBLIC LIBRARY 



Department: Department of Public Health (DPH) 

Item: Ordinance amending Sections 1176, 1191, and 1204 of Part 

II, Chapter V of the San Francisco Municipal Code (Health 
Code) to provide for changes in the fees charged by the 
Department of Public Health for various services related to 
hazardous materials and hazardous waste beginning in 
Fiscal Year 2000. 

Description: The proposed ordinance would revise fees effective July 1, 

1999 charged for State-mandated 1 hazardous materials 
regulation services provided by the Department of Public 
Health's Hazardous Materials Unified Program Agency 
(HMUPA). According to Ms. Sue Cone of DPH, HMUPA 
regulates businesses that store hazardous materials either 
above ground or in underground storage tanks or that 
generate or treat hazardous waste. Ms. Cone explains that 
regulated businesses pay fees based on the amount of 
hazardous material stored, the number of underground 
storage tanks, the amount of hazardous waste generated and 
the treatment method used. Ms. Cone further explains that 
these fees cover the costs for DPH to provide regulation 



1 According to Ms. Cone, this service mandate is included in the State of California Health <t Safety 
Code, Chapter 6.11. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 12, 1999 Finance and Labor Committee Meeting 



services, including the conducting of inspections of applicable 
businesses and related administrative costs. 



Comment: 



Recommendation: 



Ms. Cone reports that HMUPA fees have not been increased 
since November 1997. Ms. Cone explains that the proposed 
fee increases would be implemented over the course of four 
years with initial implementation planned for July 1, 1999, 
as reflected in the Attachment to this report provided by 
DPH. Ms. Cone further explains that the proposed fee 
increases are being proposed to fully recover the costs of the 
HML T PA hazardous materials regulation services. 

The Attachment to this report, provided by DPH, lists all of 
the existing fees, the proposed fees and the dollar and 
percentage fee increases. 

According to Ms. Cone, the total annual revenues realized 
from the existing fees are estimated at $1 million and the 
proposed fees would result in estimated increased annual 
revenues of $200,000 in the first year of implementation, 
$400,000 in the second year of implementation, $600,000 in 
the third of implementation, and $800,000 in the fourth year 
of implementation. These annual revenue increases would 
result in total estimated annual revenues of SI. 2 million in 
the first year of implementation, $1.4 million in the second 
year of implementation, $1.6 million in the third of 
implementation, and $1.8 million in the fourth year of 
implementation and thereafter. Ms. Cone reports that all 
such fee revenues are included in the DPH annual budget. 

As previously noted, Ms. Cone reports that the proposed fee 
increases are for purposes of fully recovering the 
Department's costs of providing the State-mandated HMUPA 
hazardous materials regulation services. 

Approval of the proposed ordinance is a policy decision for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

2 



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Sc:ST 6S6I-£T-Ayu 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 

Item 2 - File 99-0785 



Department: 
Item: 



Amount: 
Source of Funds: 

Description: 



Airport 

Ordinance appropriating $143,500,000 for renovation of the 
Airport's North Terminal, expansion of the International 
Terminal's retail concession facilities, construction of a new 
International Terminal public parking facility, construction 
of a new public aviation archive/museum in the new 
International Terminal, and related costs; placing 
$143,500,000 on reserve. 

$143,500,000 

San Francisco International Airport Second Series Revenue 
Bonds 

In March 1999, the Board of Supervisors approved a 
resolution (File 99-206) authorizing the issuance of up to 
$165,000,000 in San Francisco International Airport Second 
Series Revenue Bonds for the purpose of financing or 
refinancing certain infrastructure improvements at San 
Francisco International Airport. The proposed ordinance 
would appropriate $143,500,000 in such Airport Revenue 
Bond Fund monies for the following projects: 

Renovation of the North Terminal. Phase 1 
($40.500.000) 

Ceiling, lighting, sprinkler and seismic upgrades would be 
performed. In addition, concession space for retail shops, 
including food and beverage facilities, would be expanded b\' 
12,000 square feet, from 39,000 square feet to 51,000 square 
feet. Office space available for rental by airlines would also 
be increased by 44,000 square feet, from 367,500 square feet 
to 411,500 square feet. 

Expansion of International Terminal Concession 
Facilities ($41.600.000) 

This project would increase concession space for retail shops, 
including food and beverage facilities, in the new 
International Terminal by 50,000 square feet, from 83.000 
square feet to 133,000 square feet. Mr. Kevin Kone of the 
Airport advises that this project is a change to the original 
design of the International Terminal which called for 83,000 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

9 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 

square feet of concession space. Therefore, the requested 
funds are required to make these modifications. 

Construction of a New International Terminal 
Parking Garage (S37.500.000) 

This project is to add a parking facility with approximately 
1,437 new public parking spaces adjacent to the new 
International Terminal. 

Construction of a Public Aviation Archive/Museum 
(S4.000.000) 

This project is to construct a new public aviation archive/ 
museum in the new International Terminal at the Airport. 
The proposed space will contain a research library with over 
15,000 airport and aviation related volumes available to the 
public as well as a two-level 8,500 square foot museum that 
will display model airplanes and archive materials. 

The Attachment, provided by the Airport, provides additional 
details about the four projects described above. 

Budget: A summary budget for the requested appropriation of 

$143,500,000 is as follows. 

North Terminal Renovation. Phase 1 $40. 500,000 

International Terminal Concession Facilities 41.600,000 

North International Terminal Parking Garage 37,500.000 

Aviation Archive/Museum 4.000.000 

Total Project Costs S 1 23.600,000 

Contingency (1.1 percent) 1,400,000 

Capitalized Interest Fund 18.000,000 

Issuance Costs 500.000 

Total S143.500.000 



Comments: 1. Mr. Kone advises that the contract for the Expansion of 

the International Terminal Concession Facilities 
($41,600,000) and the contract for the new International 
Terminal Parking Garage ($37,500,000) have been 
competitively bid and were awarded to Tutor Saliba, the low 
bidder for both projects. Mr. Kone, contractors for the North 
Terminal Renovation and Aviation Archive/ Museum projects 
have not yet been selected and that the contracts for both of 
these projects will be awarded on a competitive basis. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

10 



Memo to Finance and Labor Committee 

Ma} 7 19, 1999 Finance and Labor Committee Meeting 



2. The proposed ordinance would place the entire requested 
amount of $143,500,000 on reserve subject to subsequent 
release by the Finance and Labor Committee pending the 
receipt of the 1999 San Francisco International Airport 
Second Series Revenue Bond proceeds and the certification of 
the availability of funds by the Controller. Mr. Kone advises 
that additional contractor information and budget details 
will be provided to the Board of Supervisors prior to the 
release of the requested funds. 



Recommendation: Approve the proposed ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

11 




Attachment 
Page I of 3 



Airport 
Coainrtxioi 
Civ tnd County 
o* San Frmnciacs 

Willie L Brown. Jr. 
Mayor 

Henry l Berm.n San Francisco I ntern ational Airport 

PretiderC ■ymf' 

Larry Mazznla gatswat to the pao* ic 

Vise Prsaiden: 

Micflael S. Smirafcy 
Lmrja S. Crayttn 
Caryl to 

VIA FAX 

JOHN L MARTIN 
Airport Diracrar 

May 14, 1999 



Ms. Monique DeJong, Budget Analyst 
3oard of Supervisors 
1390 Market Street, Suite 1025 
San Francisco, CA 94102 

Dear Ms. DeJong: 



Below you will find the project description that you requested for the Airport's SI 65 
Million Irifrastructure 3ond Supplemental Appropriation request. 

North Terrrrinal Renovation Proiect 

The North Terminal, completed in 1979, is in need of a partial renovation in order to 
meet certain safety and security requirements, provide better service to the customer and 
accommodate business development growth. 

The North Terminal facility does not meet the same safety and security standards that 
exist in other terminals. The installation of a sprinkler system, seismic retrofit of the 
utilities system and the nrcproonng of certain areas are required m order to upgrade the 
facility's safety and security components. Also, from a customer convenience and 
aesthetic point of view, the hghting and ceiling systems need to be upgraded along with a 
number of other enhancements. 

In addition to safety, security and customer convenience, the Concession/Service 
Program in the North Terminal is significantly undersized and, therefore, unable to 
provide the level of access and service for the volume of people who use this terminal. 
Similar to the existing International Terminal's very high concession sales per square foot 
and sales per enplaned passenger, the North Terminal's sales statistics indicate that the 
Airport may be losing or foregoing sales and revenues from its concession program due 
to saturated levels. From an operational perspective, the terminal also lacks suitable 
office and support space for usage by the airlines and other tenants. 



SAN FRANCISCO INTERNATIONAL AIRPORT- P.O. BOX KH7 . SAN FRANCISCO CAUFORNIA 9412S.TH£PH0N= (GDI 794-50TX . FAX Raj nt^ci 

12 



Attachment 
Page 2 of 3 



Monique DcJong 
Page 2 

May 14, 1999 



International Terminal Concession Plan 

The Airport has analyzedtiie bass or Existing Plan for the concession program in the new 
International Terminal Building (TTB) and forecasts that the concession space wfll not 
adequately support the forecasted amount of international passenger tr affic The analysis 
indicates that within three years of opening, the concession space, on a per passenger 
basis, will approach the levels of saturation currently experienced in the existing 
International Terminal There is also the strong probability that the Airport is losing or 
foregoing sales and revenues from its concession program due to saturated levels during 
peak periods in the existing International Terminal. This is evidenced by the extremely 
high sales per enplaned passenger, one of the highest of any single terminal in the U.S., 
as well as higher than normal concession sales per square foot In addition, the sight lines 
and layout of the Existing Plan do not integrate properly with the relative geometry of the 
building and passenger flow patterns thereby reducing the effectiveness of the concession 
space. 

In order to op timize concession revenues and customer service in the ITB, the Airport is 
proposing an Alternate Plan to develop space on the east wall of the ITB for retail 
concessions and reconfigure certain portions of the ITB and connectors to the Boarding 
Areas. This plan will increase planned concession space by 60% from 83,000 square feet 
to 133,000 square feet Given the very favorable sales and revenues currently being 
achieved in the existing International Terminal and the forecast rate of international 
passenger growth, constructing adequate concession space during the current 
development phase will be required to optimize revenue potential in the ITB. Concession 
space planning and revenue analysis is provided in the Analysis of Incremental Sales and 
Revenue Alternative Concession Plan prepared by Leigh Fisher Associates. 

The Alternate Plan includes the build out of the cast wall of the ITB and other 
modifications to increase concession space from 83,000 square feet to 133,000 square 
feet The build out envisioned in the Alternate Plan will not affect the operational 
effectiveness of the ITB. Nor will it affect the scheduled opening of the ITB. The project 
scope and costs are included in the Concessions Revision Study. 

The new concession space will be allocated among duty free, food and beverage, retail 
merchandise, services and storage. Based on retail industry conditions, the Airport will 
focus on high quality specialty retail concessions. Depending on passenger growth and 
market conditions, storage space will be made available for retail concession usage at the 
time of the ITB opening or within the first five years of operation in order to maxJmtgn 
revenues. 



13 



Attachment 
Paee 3 of 3 



Moniquc DcJong 
Page 3 
May 14, 1999 



North International Terminal Garage 



The North. International Parking Garage is a nine-level concrete strucTurc. This structure 
will provide parking spaces for 1,437 automobiles. This project also includes on grade 
surface parking and landscaping adjacent to the structure. This structure is adjacent to 
the Concourse H/3ART Station. 

Aviation library and the L.A. Turner Museum 

The Aviation Library Museum will be a self-contained building within the International 
Terminal It is a replication of the 1937 passenger terminal. 

A research horary consisting of rare books and an archive. The library itself will house 
15,000 volumes in a secured space. Additionally there will be e work area for staff 
consisting of a book processing area and computer workstations. 

A museum consisting of galleries in denned wall areas that can be named for donors. 
Display cases for models and archival museum material Within the bi-leveL 8.500 
square foot museum, staff will have the ability to hang airplane models from the ceiling. 
Certain museum exhibitions will be- visible from the terminal concourse area 

If you have any further questions, please call Kevin Kone of my staff at 650-373-2887. 

Very truly yours, 



"KU,- r 



-pr 



Marcus Perro 

Executive Financial Officer 



14 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 

Item 3 - File 99-0917 



Department: 
Item: 



Amount: 



Source of Funds: 



Description: 



Budget: 



Airport 

Ordinance appropriating $57,111,485 to partially fund three 
Airport capital improvement projects, including (1) design 
and construction of the Concourse H/AirTrain Station; (2) 
construction of a new West Field Detention Basin; and (3) 
the Taxiway "C" Overlay Project. 

$57,111,485 

Various Airport Bond Fund Balances (a list of the 32 Airport 
bond funds and the amount to be appropriated from each 
appears on the ordinance). 

The proposed ordinance would appropriate $57,111,485 in 
interest earned on various Airport bond fund monies (a list of 
the 32 Airport bond funds and the amount to be appropriated 
from each appears on the ordinance) to partially fund the 
following projects: (1) design and construction of the 
Concourse H/AirTrain Station; (2) construction of a new West 
Field Detention Basin; and (3) the Taxiway "C" Overlay 
Project. A description of each of these projects, provided b\ r 
the Airport, is shown on Attachment I. 

The requested appropriation of $57,111,485 would partially 
fund the three Airport projects. The Table below is a 
summary budget for each of the projects, showing the total 
amount of each project, the amount to be funded by the 
subject supplemental appropriation and the remaining 
balance. 











Balance to be 










Funded With a 










Future 








Amount to Be 


Supplemental 








Funded Bv 


Appropriation 






Amount 


This 


of Airport Bond 




Total 


Previously 


Supplemental 


Fund Interest 


Proiect 


Proiect Costs 


Appropriated 


Appropriation 


Earninffs* 


Concourse H/AirTrain Station 


S114.365.500 


S52.451.462 


S48.103.092 


S13.810.946 


West Field Detention Basin 


8,637.505 





7,644,199 


993.306 


Taxiway "C" Overlay 


5.144.349 


3.602.888 


1.364.194 


177.267 


Total 


5128,147.354 


S56.054.350 


$57,111,485 


$14,981,519 



Subject to separate appropriation approval by the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

15 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 



Comment: 



As shown in the Table above, the total project costs for the 
three projects is $128,147,354. Of that amount, $56,054,350 
has been previously appropriated, $57,111,485 would be 
funded by the subject supplemental appropriation of Airport 
bond fund interest earnings and $14,981,519 would be 
funded through a future supplemental appropriation of 
Airport bond fund interest earnings, subject to separate 
approval by the Board of Supervisors. According to Mr. Kevin 
Kone of the Airport, currently there is a total balance of 
$57,111,485 in Airport bond fund interest earnings. 
However, the Airport projects that an additional amount of 
bond fund interest earnings will be generated in excess of the 
$14,981,519 needed to complete the funding of the projects. 
Mr. Kone states that once the remaining $14,981,519 in 
projected interest earnings have been earned, the Airport 
will submit a supplemental appropriation request for these 
funds, subject to separate approval by the Board of 
Supervisors. 

Attachment II. provided by the Airport, is a list of contractors 
and subcontractors for each of the projects. Mr. Kone reports 
that the three projects were competitively bid and in each 
case the low bidder was selected. 



Recommendation: Approve the proposed ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

16 



Attachment I 



San Francisco International Airport 

Projects to be funded from Interest Income 

February 9, 1999 



Project 5670A-Concourse H/AirTrain S tation 



This project consists of the design and construction of station facilities to 
accommodate Bay Area Rapid Transit (BART). It will also provide a direct link 
from BART to the AirTrain System and the new International Terminal. 

Project 3487 -West Field Detention Basin 



This Project will construct a new underground West Field Drainage Detention 
Basin to replace the existing West Field Detention Pond. This Project is Tequired 
to provide more storage capacity to provide more storage capacity to meet the 
State of California storm water requirements. 

Project 3192B-Taxrway "C" Overlay 



This Project will provide asphalt overlay to smooth and level the pavement 
surface of Taxiway "C" and the necessary adjustments to the existing lighting 
system. The work comprises of extending Taxiway a C" to Taxiway "S" , 
overlaying Taxiway "P* at Runway 28R, paving panting lot for equipment 
. storage, construction of a new drainage systems and 48 inch drainline, 
construction of 20 inch sewer m^i^, construction of 36 in jet fuel line casings, 
construction of electrical duct banks and construction of electrical taxiway 
lighting systems. 



17 



Artachner. t ,1 
Page i of 2 



CT567J1.A H / Air Train Station: 

Contract Awarded to Tntor Saliba 

Total cost- $114,365,500 
MBE - 33.2% (538,106,464) 
WBE- 1.1% ($1,309,000) 
Original Goals: 18% MBE, 3% W3E 

Stare February 19, 1998 
End: March 2000 

Sub-Contractors: 

LTM Construction - Form-work (MBE, $3,960,000) 

Rios Grading - Excavation (MBE, SI, 060,000) 

San Luis Gonzaga - Mechanical (M3E, S2,<i45,000) 

Scott Norman - Firs Protection (M3E, S2, 190,000) 

WSB & Associates - Security (MBE, S67.000) 

Cresci Electric - Supplier (W3E, S3 00,000) 

Miller Thompson Construction - Utilities (WBE, 5385,000) 

Phoenix Painting Co. - Painting (WBE, 5624,000) 

Martinez Steel - Rcbar (MBE®, S5,025,464) 

Regional Steel - Stcel-Remforcing (M3E®, S15^29,000) 

Accu-cretc, Inc.- Concrete (MBE®, 58,130,000) 

Amclco Electric - Electrical (S5.165.0O0) 

Craneveyor - Railing (SI, 500,000) 

Custom Enclosures - (SI, 732,000) 

Foundations Constructors - Piles (S8,900 : 000) 

George Family Entemrisc - Acoustical (52,300,000) 

Model Glass - (54,225,000) 

Pierce Enterprise - Plastic, Drywall (S4, 100,000) 

Sure Forming System - Form-work (51,400,000) 

Willis Corporation - Precast (51,590,000) 



NOTE: ® - (Registered firm) - Minority firm based outside of San Francisco. 



18 



Attachment II 
Page 2 of 2 



CT3192.B CF\ A) Ta^iwav "C" Extension & Tariwav "P" Overlay Utilities 
Construction: 

Contract awarded to Pavel Construction Co. 

Total Cost- S 5,144,349 
DBE - 46.6% (52,397,416) 
Ori ginal D3E Goal; 20% 

Start: January 1998 

End: Estimated completion dais: December 1998 

Sub-Contractors: 

Airport Paving Making — Striping (D3E, S5 1,850) 

JM3 Construction- Underground (DBE, 51,389,000) 

Carefree Greens - Hydro-seeding (D3E®, 53,000) 

J. Cannon Engineering - Electrical (DBE®, S934,000) 

Central Fence'Co. - Fencing - (DBE, $19,566) 

Anrak Corporation - Grinding (S36,000) 

Advance Environmental Systems - Hazardous Materials (51 13,960) 

FAA Project- M/W3Es Ide ntifi ed as DBEs (Disadvantaged Business Enterprises) 



CT3487 West Field Detention Basin; 

Contract awarded to Dennis J. Amoroso/Trieo WBE (JV) 

Total Cost - S8,637,505 

M3E - 27.4% (52,370,000) 

WBE - 51% (54,405,127) - Joint Venture Parmer 

Original Goals: 18% MBE, 7% WBE 

Start: July 1997 
End: August 1999 

Sub-Contractors: 

Transamerican Eng. & Assoc- Earthwork, Utilities (MBE, SI, 800,000) 

Coast Geoconstrucors - Shoring (MBE, S270.000) 

3arri Electric - Electrical (MBE, 5300,000) 

Dolan - Concrete (5120,000) 

RPM-Rebar (58 11,000) 

CFCC - Horizontal Form-work (S700,000) 



19 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

Item 4 - File 99-0798 






Department: Building Inspection Commission (BIC) 

Department of Building Inspection (DBI) 

Item: Ordinance amending Part I of the San Francisco Municipal 

Code (Administrative Code) by adding Chapter 77 thereto 
and amending Part II, Chapter I of the San Francisco 
Municipal Code (Building Code) by adding Section 105.8 
thereto to implement the Charter-mandated appellate 
authority of the Building Inspection Commission, to provide 
that appeals heard by the former Abatement Appeals Board 
shall be heard by the Building Inspection Commission, and 
to authorize an exemption from or refund of appeal fees 
under specified circumstances; amending Table I-K of the 
Building Code to establish Building Inspection Commission 
appeal fees. 

Description: According to Mr. Frank Chiu of the Department of Building 

Inspection (DBI), this proposed ordinance would establish 
new fees for appeals to be heard by the BIC which was 
established by Proposition G in 1995. Mr. Chiu explains that 
the BIC hears appeals on all (1) decisions and determinations 
regarding permit applications under the Building, Housing, 
Electrical, Mechanical and Plumbing Codes, (2) decisions or 
determinations by the Department of Building Inspection 
(DBI) in the enforcement of the Building, Housing, Electrical, 
Mechanical and Plumbing Codes, (3) decisions or 
determinations made by the Department of Public Works 
(DPW) on sidewalk and encroachment permits and other 
matters necessary for the completion of occupancy of 
structures, (4) decisions by the Water Department (WD) 
necessary for the completion of structures, (5) failure of DBI. 
DPW, WD to render a written decision or determination 
within fifteen days of a request from a member of the public 
to do so. Mr. Chiu further explains that the above-listed 
appeal rights did not exist prior to the passage of Proposition 
G and the resulting creation of the BIC. 



Ms. Maria Banico of Building Inspection Commission 
clarifies that although the BIC was established in 1995, the 
DBI had not previously requested that the appeals fees be 
established. Ms. Banico reports that the proposed fees for 
the appeals to be heard by the BIC are as follows: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

20 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 



Comment: 



Recommendation: 



BUILDING INSPECTION COMMISSION HEARING FEES: 
Notice of Appeal $100 

Request for Jurisdiction $100 

Request for Rehearing $100 

Ms. Banico explains that one appellant may be required to 
pay one or all the proposed fees depending on the nature of 
the appeal. According to Ms. Banico, the BIC has heard one 
appeal in FY 1998-99 and five appeals in FY* 1997-98 for 
which no fees were charged because the authority to collect 
fees for these appeals was never requested by the DBI. Ms. 
Banico estimates that BIC will receive between $200 and 
$500 in annual revenues from the proposed new fees based 
on two to five appeals annually. 

According to Ms. Banico, although the proposed fees do not 
cover the BIC's and DBFs costs for an appeal process, Ms. 
Banico states that the proposed fees reflect the BIC's desire 
to make the appeal process affordable while also 
discouraging the submittal of spurious appeals. 

Approval of the proposed ordinance is a policy decision for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

21 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 

Item 5 - File 99-0809 



Department: 
Item: 

Amount: 
Source of Funds: 



Description: 



Department of Administrative Services (DAS) 
Department of Real Estate 

Request for release of $556,280 of reserved funds to 
defray expenses related to the reuse of leased space 
at 875 Stevenson Street. 



$556,280 
$91,400 



464.880 



Public Utilities Commission 

Supplemental Appropriation, Water, 
Hetch Hetchy and Clean Water Fund 
balances (Reserved by the Finance 
and Labor Committee at its meeting of 
April 21, 1999 - File 99-0245) 

Department of Administrative 
Services Fiscal Year 1998-99 Budget, 
General Fund 



$556,280 Total 

The Board of Supervisors approved a lease for a 
total of approximately 150,000 square feet of space 
on five floors at the 875 Stevenson Street facility in 
1994. This lease, through the Real Estate 
Department, which was amended in 1996, extends 
until November of 2002 with three different options 
to further extend the lease from six months to 7.5 
additional years (through May of 2010) with the 
rent to be adjusted to 95 percent of the then 
prevailing market rental rates. Mr. Steve Legnitto 
of the Department of Real Estate reports that the 
current lease costs, without utilities, janitorial and 
security services are approximately $1.33 per 
square foot per month, or $16 per square foot per 
year at 875 Stevenson Street. 

The requested $556,280 release of reserve would be 
used to fund construction renovations for 42,955 
rentable square feet of space, leased by the City at 
875 Stevenson Street from the General Fund for 
four City departments, including the Public 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

22 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 

Administra tor/Public Guardian (PA/PG), the 

Controller's Payroll and Personnel Services 

Division (PAPG), the Municipal Railway (MUNI) 
and the Assessor. 

According to Mr. Tony DeLucchi of the Real Estate 
Department, now that various City departments 
have moved from 875 Stevenson Street to the 
renovated City Hall, the Real Estate Department is 
backfilling the vacated space at the 875 Stevenson 
Street facility, with the concurrence of the City 
Hall Policy Committee. Mr. DeLucchi reports that 
the City Hall Policy Committee, which is comprised 
of representatives from the Controllers Office, 
Treasurer's Office, Department of Administrative 
Services, Mayor's Office, Department of Public 
Works and other City staff representatives, have 
been meeting for over a year to provide direction 
and reuse of City Hall and the surrounding office 
space in the Civic Center. Mr. Legnitto reports that 
the reuse of the 875 Stevenson Street by the four 
General Fund City departments does not represent 
a new lease for the City. 

Under the proposed renovation of 875 Stevenson 
Street, the four General Fund City departments 
would relocate into this facility, from their current 
locations, as summarized in Attachment 1. Mr. 
Legnitto reports that the Assessor's staff, currently 
located on the third floor of 875 Stevenson Street 
would be relocated to the ground floor of 875 
Stevenson Street in order to consolidate the 
Assessor and Recorder functions on the first floor 
and to provide the entire third floor for use by the 
PUC. The Controller's PPSD staff is currently 
located in leased facilities at 160 South Van Ness. 
According to Mr. Legnitto. the lease on the facilities 
at 160 South Van Ness expires on June 30, 1999 
and an extension of this lease is currently being 
renegotiated by the Real Estate Department for use 
by the Department of Human Services (DHS) for 
their new hires and to relocate staff from other 
DHS work sites (See Item 7, File 99-0S56 of this 
report to the Finance and Labor Committee). 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

23 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 



The space currently occupied by tbe Public 
Administrator-Guardian, which is located at 25 
Van Ness Avenue, a City-owned building, would be 
occupied by the Department of Parking and Traffic 
(DPT) for their new Traffic Control Center and for 
their relocated Residential Permit Parking 
Program, which is currentry located in the 
Performing Arts Garage. Mr. Legnitto notes that 
the approval of the lease expansion for DPT to 
move into the space vacated by the Public 
Administrator-Guardian is not subject to the Board 
of Supervisors approval, except for the budgetary 
authorization, because the City owns 25 Van Ness 
and it is simply a reuse of the existing space. 

Mr. Jim Nelson of MUNI reports that under the 
proposed move, the MUNI Management 
Information System (MIS) Division, which has a 
total of approximately ten staff located at various 
locations throughout the City, would be 
consolidated in the Civic Center area at 875 
Stevenson Street. Mr. Nelson reports that the 
vacated space will likely be absorbed by other 
MUNI staff throughout the City. In addition, Mr. 
Nelson notes that MUNI Security, which currently 
has approximately five staff and is currently 
located at 1345 Turk Street, a City-owned facility, 
would be expanded to approximately 20 staff and 
relocated to 875 Stevenson Street. Mr. Nelson 
reports that the freed up space by MUNI at 1345 
Turk Street will be used by the Art Commission, as 
part of a redevelopment project. Mr. Phil Chin of 
MUNI Security reports that MUNI's Security staff, 
under three programs (1) MUNI Transit 
Assistance, (2) Video Surveillance and (3) Proof of 
Payment, was authorized for the proposed increase 
of approximately 15 positions in the current FY 
1998-99 budget. 

The following chart compares the current square 
footage and rents with the proposed square footage 
and rents at 875 Stevenson Street for the four 
General Fund departments. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

24 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 



875 Stevenson Street 







Annual 








Current 


Current 


Cost 


Proposed 


Proposed 




Square 


Annual 


Per 


Square 


Annual 


Deoartment 


Footaffe 


Rent ! 


5q. Ft. 


Footaffe 


Rent*** 


PPSD 


15.000 


$180,000 


$16 


12,543 


$200,688 


PAPG 


9,521 


152,405 


16 


13,223 


211,568 


MUNI 


3.000 


0** 


16 


7.765 


124,240 


Assessor 


10.791* 


258.976 


16 


9.424 


150.784 


Total 


38.312 


$591,381 




42,955 


$687,280 



*Assumes approximately 2/3 of 16,186 square feet of space actually 
currently being used by Assessor staff that were not moved to City Hall. 

**Assumes no rent because MUNI currently occupies only City-owned 
space and does not pay rent for such space. 

***Actual costs for these four General Fund departments will total 
approximately $917,519, an additional $230,239, due to the utility, 
janitorial and security costs at 875 Stevenson Street. 

Budget: Attachment 2, provided by Mr. Steve Nelson of the 

Department of Administrative Services identifies 
the construction costs for the Controllers Payroll 
and Personnel Services Division (PPSD), the Public 
Administrator/Public Guardian (PAPG) and the 
Municipal Railway (MUNI). As shown in 
Attachment 2. the estimated construction cost for 
renovation of 875 Stevenson Street for these three 
departments is $711,315. However, based on the 
use of Department salary, capital project and 
operational savings of $146,435 from PPSD and 
$100,000 from PAPG, for total departmental 
savings of $246,435 (See Comment No. 1 for 
additional details), the Department of 
Administrative Services is now requesting 
$464,880 ($711,315 less $246,435) for construction 
costs, which is the amount of the subject release of 
reserve from the Department of Administration's 
FA' 1998-99 budget for the Controller, the Public 
Administrator/Public Guardian and MUNI. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

25 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 



An additional $91,400 is being requested as part of 
this release of reserve for use by the Assessor's 
Office in relocating within 875 Stevenson Street. 
These funds were recently appropriated by the 
Board of Supervisors under a separate PUC 
supplemental (File 99-0245), but reserved by the 
Finance and Labor Committee. Attachment 3, 
provided by the Real Estate Department, identifies 
the cost breakdown of the $91,400 for the 
Assessor's Office. Although the Assessor's Office is 
a General Fund department, the proposed source of 
funding would be from the PUC, instead of the 
General Fund because, according to Mr. Ben 
Rosenfield of the Mayor's Office, the Assessor 
would not be required to move, except for the fact 
that PUC is requesting the use of the entire third 
floor at 875 Stevenson Street where the Assessor is 
currently located. 

In addition to this subject request of $464,880 plus 
$246,435 of General Fund FY 1998-99 
departmental savings, as shown in Attachment 2, 
the Department of Administrative Services 
estimates an additional cost of $616,709 for the 
furnishings, moving expenses, telecommunications, 
public improvements, design, project management 
and indirect costs and fees. Attachment 4, provided 
by Mr. Nelson identifies the funding sources for 
this additional $616,709. 

Therefore, the actual total estimated costs for the 
General Fund portion of the renovations and 
related furniture and other costs to 875 Stevenson 
Street is $1,328,024 ($464,880 plus $246,435 plus 
$616,709). The Budget Analyst notes that this 
General Fund total cost of $1,328,024 is in addition 
to the $1,212,310 recently approved and released 
by the Board of Supervisors for the Public Utilities 
Commission (PUC) to renovate space at 875 
Stevenson Street. The subject release of $556,280 
includes $91,400 for the General Fund Assessor's 
costs related to 875 Stevenson Street, that will be 
paid for from the previously approved PUC funding 
sources. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

26 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 

Comments: 1. Mr. Rosenfield reports tbat the $146,435 of 

PPSD department savings indicated on Attachment 
2 are a result of approximately $106,435 of salary 
savings and approximately $40,000 from an old 
capital account which is being closed out in the 
Controller's Office for PPSD. In addition, the 
$100,000 of PAPG department savings represents 
approximately $75,000 from salary savings and 
$25,000 from operational savings, such as material 
and supplies accounts. The Budget Analyst notes 
that these total General Fund savings of $246,435, 
as reflected in Attachment 2, which are being used 
as a funding source for the subject renovations 
would otherwise be closed out to the City's General 
Fund, if such funds were not used for the proposed 
renovations to 875 Stevenson Street. 

2. Attachment 4, provided by Mr. Nelson indicates 
the source of funds to be used to finance the 
proposed additional $616,709, which is not the 
subject of this request, for furniture, moving 
expenses, telecommunications, design, public 
improvements, project management, indirect costs 
and fees. Mr. Ed Harrington of the Controller's 
Office reports that these previously appropriated 
funds of $616,709, for other capital and childcare 
subsidy purposes, do not have to be reappropriated 
by the Board of Supervisors to be used by the 
Department of Administrative Services for the 
renovations, furniture and related expenses for 875 
Stevenson Street because these funds are 
considered a surplus transfer from the Department 
of Administrative Services. The Budget Analyst 
notes that if this $616,709 of previously 
appropriated General Fund revenues were not used 
for the 875 Stevenson Street project, such funds 
would otherwise be closed out to the City's General 
Fund and available for any other General Fund 
purpose. 

3. Mr. Legnitto reports that Komourous-Towey 
Architects (KTA) will be the architect to provide the 
design services, who was selected by the 
administrator of the Mart, the landlord of 875 
Stevenson Street. Furthermore, Mr. Legnitto 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

27 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 



reports that the noted project management fees 
would be paid to the Mart, the landlord of 875 
Stevenson Street, to oversee and manage the 
improvements for the leased space. According to 
Mr. Legnitto, any discrepancies in the percentage 
of design services or project management fees for 
each department is because these are estimates of 
the level of design and project management 
sendees needed. Mr. Legnitto reports that the City 
Architect and Real Estate will monitor the actual 
expenditures and each department will only be 
charged for the actual amount of design time spent 
by the architect and project management 
responsibilities assumed by the Mart. 

4. Mr. Legnitto notes that prior to the City 
occupying the 875 Stevenson Street facility in early 
1995, the City spent approximately $5,280,000 to 
renovate and upgrade four floors of this building, or 
an amortized cost over the four-year period that 
these facilities were occupied of approximately 
$1,320,000 per year. Mr. Legnitto reports that the 
Department of Technology and Information 
Services (DTIS) moved in approximately a year 
later in 1996, incurring additional renovation costs 
of approximately $1,290,000, for a total renovation 
cost to the 875 Stevenson Street facility of 
$6,570,000. However, Mr. Legnitto notes that the 
lessor of 875 Stevenson Street provided a credit to 
the City of approximately a total of $2,000,000 
against the total cost of tenant improvements 
incurred by the City, such that the City only 
incurred expenses of approximately $4,570,000 
($6,570,000 total less $2,000,000 credit) for such 
tenant improvements. Nevertheless, the initial 
renovation cost of $5,280,000 includes 
approximately $1,974,016 to renovate the same 
proposed space, which these three General Fund 
departments are now proposing to expend an 
additional $1,328,024 plus $91,400 for the 
Assessor, for a total of $1,419,424 to further 
renovate and upgrade the same space. In addition, 
the Budget Analyst notes that on May 3, 1999, the 
Board of Supervisors approved $1,212,310, not 
including the subject $91,400 placed on reserve for 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

28 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 

the Assessor's Office, for the PUC to renovate 
leased space at 875 Stevenson Street. Thus, with 
the subject request, a total of $9,201,734 
($5,280,000 initial expenditure plus $1,290,000 for 
DTIS renovations plus $1,212,310 for PUC 
renovations plus $1,419,424 for the proposed 
expenditures) would have been spent since 
approximately 1994 for renovations and 
furnishings for the leased space at 875 Stevenson 
Street, of which $7,201,734 was paid for by the City 
and approximately $2,000,000 was provided as a 
credit by the Mart. 

5. According to Mr. Legnitto, the reasons these 
General Fund City departments need to spend 
approximately $1,419,424 to renovate and furnish 
this space after approximately $1,974,016 was 
spent on this same space only approximately four 
years ago is because (1) the original $1,974,016 
reflected only minimal tenant improvements to the 
space, (2) much of the original budgeted 
improvements only had a useful life of three years, 
(3) the Americans With Disability (ADA) and other 
building code requirements have changed and (4) 
whenever one City department is replaced by 
another City department, some renovations are 
always required. Mr. Legnitto notes that in 
accordance with the Finance and Labor 
Committee's response to the PUC's recently 
approved supplemental appropriation for 875 
Stevenson Street, the proposed request by the 
General Fund departments does not include 
additional new carpeting, but rather would only 
clean, patch and replace small portions of carpeting 
and provide vinyl flooring at an estimated total cost 
of $24,952. 

6. If the proposed supplemental appropriation is 
approved, the value of the construction costs 
($753,314), public improvements ($20,764), design 
fees ($62,393), project management ($46,816), 
indirect costs, reserves and fees ($149,401) and 
most of the telecommunications ($150,962) costs, 
totaling up to $1,183,650 (including the Assessor 
costs), as identified in Attachments 2 and 3, would 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

29 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 



be lost if tbe City vacates the 875 Stevenson 
building in 2002, at an amortized cost of $394,550 
per year for these renovations, over a three-year 
period. According to Mr. Legnitto, it is likely, 
although he can make no assurances, that these 
four General Fund City departments will remain in 
the 875 Stevenson Street facility for approximately 
five years, which would reduce the amortized cost 
of the proposed renovations to $236,730 per year. 

7. According to Mr. Legnitto, since the proposed 
lease was renegotiated in 1996, when lease rates 
were less expensive, the existing proposed lease 
rate of $1.33 per square foot per month payable by 
the PUC represents less than the current fair 
market value for such a building. Mr. DeLucchi 
estimates that the fair market value rate for a 
comparable lease is approximately $1.75 per square 
foot per month at this time, or approximately $.42 
per square foot per month more than the rate at 
875 Stevenson Street. Mr. DeLucchi notes that 
fully servicing the 875 Stevenson Street lease, 
which would include providing utility, security and 
janitorial costs, increases the 875 Stevenson facility' 
costs to $1.78 per square foot per month, and that 
comparable servicing costs would be added to other 
market rate leases. 

8. Attachment 5 identifies the furniture costs of 
$166,580 broken down by the three departments of 
PPSD, PAPG and MUNI. An additional $30,520, as 
identified in Attachment 3, is estimated for 
furnishings for the Assessor's Office, for a total 
General Fund furniture cost of $197,100 for 875 
Stevenson Street. When queried by the Budget 
Analyst regarding the need for such additional 
furnishings, Mr. Legnitto reports that all of the 
purchases of equipment will be refurbished 
workstations, that can be easily moved when these 
four General Fund departments are relocated from 
this leased space in future years. The Budget 
Analyst estimates that the average cost for these 
refurbished workstations is approximately $2,700 
per employee. In comparison, Mr. Legnitto reports 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

30 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 



that the average cost for the new workstations 
provided to employees in City Hall was $5,000. 

The Budget Analyst however notes that when City 
employees moved back to City Hall in January of 
1999, a total of approximately $5 million in various 
t\~pes of furniture and equipment was provided for 
City employees. Many of these City employees, 
including employees from the Treasurer/ax 
Collector's Office, Recorder/ Assessor's Office, 
Controller's Office, etc. were previously located at 
875 Stevenson Street. It should be noted that these 
employees' furnishings were left behind at 875 
Stevenson Street. 

9. In response, Mr. Legnitto notes that MUNI staff 
will be reusing the furniture left at 875 Stevenson 
Street from the Treasurer/Tax Collector's Office 
and, as shown in Attachment 5 will spend S15.290 
to provide electrification for these workstations. 
Mr. Legnitto reports that the Controller's 
Personnel and Payroll Sen-ices Division (PPSD) 
will leave their existing furniture behind at 160 
South Van Ness for use by the Department of 
Human Services, which will be moving into their 
vacated space. PPSD will then reuse the 
Controller's furnishings left at 875 Stevenson 
Street, together with rebuilding and purchasing 
$36,835 of furnishings. The Assessor will be 
reusing Assessor and Recorder furnishings left at 
875 Stevenson, together with electrification and 
related costs of $30,520. The Public 
Administrator/Guardian will primarily be 
purchasing refurbished, electrified workstations at 
a cost of $114,455, and will not be reusing their 
own or other department's furnishings. 

10. A total of $464,880 of General Fund revenues 
were placed on reserve by the Board of Supervisors 
in the FY 1998-99 budget of the Department of 
Real Estate to finance the costs of renovations and 
furnishings at 875 Stevenson Street for these four 
General Fund departments. However, as noted 
above, the Department is now proposing to spend 
$1,419,424 for 875 Stevenson Street renovations 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

31 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 



and furnishings for these four General Fund 
departments, which represents an increase of 
$954,544 or 205 percent. 

11. The Budget Analyst also notes that, according 
to Mr. Tony DeLucchi of the Real Estate 
Department, approximately 66,500 square feet of 
the total approximately 150,000 net rentable 
square feet at the 875 Stevenson Street facility is 
currently vacant. At a lease cost of $1.33 per square 
foot per month, excluding utilities, security and 
janitorial services, the City is currently spending 
approximately $88,445 per month for this vacant 
space. The Budget Anaryst notes that City 
employees vacated the 875 Stevenson Street 
facility in December of 1998 and January of 1999 
and that it is anticipated that the renovations 
under this subject request and the previously 
approved PUC request would not be completed and 
these City departments would not be able to 
relocate into this space until approximately the end 
of Summer or early Fall of 1999, leaving this space 
vacant for at least eight months, at an approximate 
cost of at least $707,560 to the City. 

12. In summary, the Budget Analyst raises the 
following concerns: (1) an increase from a current 
total of 38,312 square feet of office space to 42,955 
proposed square feet, an increase of approximately 
4,643 square feet of office space, or 12.1 percent 
overall; (2) an overall increase from $591,381 to 
$687,280 per year in rent, which is a General Fund 
annual increase of $95,899, or 16.2 percent; (3) 
including the $91,400 for the Assessor's Office, the 
City is proposing to spend an additional $1,419,424 
for these General Fund renovations at 875 
Stevenson Street, although the City initially placed 
on reserve $464,880 in the FY 1998-99 budget for 
this purpose, an increase of $954,544 or 205 
percent; (4) as a result, $246,435 of FY 1998-99 
salary, capital project and operational savings from 
the Controller's Office and the Public 
Administrator/Guardian's Office will be used for 
these renovations and related costs at 875 
Stevenson Street, which would otherwise be closed 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

32 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 

out to the City's General Fund; (5) an additional 
$616,709 of prior year appropriations, as shown in 
Attachment 4, will also be used for the proposed 
renovations and related costs at 875 Stevenson 
Street, which would otherwise be closed out to the 
City's General Fund; (6) with the subject request, a 
total of $9,201,734 ($5,280,000 initial expenditures 
plus $1,290,000 for DTIS renovations plus 
$1,212,310 for PUC renovations plus $1,419,424 for 
the proposed expenditures) will be spent since 
approximately 1994 for renovations and 
furnishings for this leased space at 875 Stevenson 
Street, with $2 million of these costs provided as a 
credit by the Mart; (7) the annual amortized costs 
of the proposed renovations and related expenses at 
this leased facility over a three-year period would 
be $394,550 per year and over a five-year period 
would be approximately $236,730 per year; (8) 
although the departments will be reusing various 
furnishings left at 875 Stevenson Street by those 
City employees who moved to City Hall, a total of 
$197,100 is proposed to be spent for additional 
furnishings; and (9) the City has an ongoing lease 
to occupy the current vacant space at 875 
Stevenson Street and is therefore paying rent on 
this vacant space at a rate of $88,445 per month, 
which will result in City costs of at least $707,560 
for the eight months that this space is vacant, from 
January through August of 1999, when these 
departments are anticipated to move into 875 
Stevenson Street. 

Recommendation: Approval of the proposed request for release of 

reserved funds is a policy matter for the Board of 
Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

33 



-n. u uen_iiLUtil.l i_ J. 



875 Stevenson Street Renovation 

ATTACHMENT IX, BEFORE & AFTER SPACE 



Rentable Area 
Before (RSF) Location 



Rentable Area 

Proposed At 575 Stevenson 



ASSESSOR 
PPSD 
PAPG 
MUNI 



N/A 



16,185 Previously on Floor 3 S.<24 Floor 1 

15,000 160 South Van Ness Avenue 12,543 Floor 2 
9,521 25 Van Nsss Avenue 13,223 Root 2 



Various 
425 Mason 
Turk Street 
West Portal Trailer 
New Hires 



7,765 Floor 2 



34 



7 



575 Stevenson Street 

Renovation Budget Summary 



Corwtnj=tjon 
Department Savings 



PPSO PAPG MUNI TOTAL 

1B8.4D4 293.158 229,753 711,315 

(146.435) (100,000) - (246.425) 



Net (Use of Reserve) 



41.959 



193.156 



229,753 



464,860 



Furniture 

Moving 

Telecom 

Public Improvements 

Design 

Project Management 

Indirect Costs, Reserves, & rees 

ADM Budget Savings 



166. 5S3 
40,500 

143. 2S8 
20,764 
59.455 
43.043 

143.079 

(616.709) 



Project Bottom Line 



35 



Attachment 3 



875 Stevenson Street Renovation 



ATTACHMENT VII , ASSESSOR'S COSTS 



Construction 



Architectural & Structural 
Mechanical 
Electrical 
Genera! Conaitions 

incfirects & Reserves 
Fees 



Furniture 



S 10,200 
5 4.495 
S 15,800 
S 5,182 
S 2,428 
S 3.894 



SUBTOTAL $41,999 
530,520 



Move (Physical) 



S 4,500 



Telecom 

Design 

Project Management 



$ 


7,574 


$ 


2,933 


$ 


3,773 



5 91,404 






36 



TOTAL P.B2 



Date: 5/5/99 

Sender: Steve Nelson 

To: Debra Newman 

Priority: Normal 

Subject: 875 Stevenson Street 



The following components make up the S600K that is included in the 
budget for the non-construction costs at 675 Stevenson Street. 

$175,000 Child Care subsidy funds not required in the current fiscal 
year 

$164,574 Excess funds not needed for the Facilities Condition 

Monitoring Prcjet, a capital project within Adrr.ir. Services 

$188,420 CAO Cap Building Project. This is an old project that was 
used to fund the costs of boiler retrofits at the Kail of 
Justice, Laguna honda Hospital and SF General Hospital some 
years ago. The project has long since been completed and 
these funds are not needed for the origiar.l purpose. 

$ 88,715 Urban Design Phase 4. This is a very cid project that we 
believe was part of the design funds appropriated fir the 
Embarcadero Roadway Project. Deisgn of the roadway has 
long since been completed and is in construction, s: these 
funds are no lonaer needed. 



$616,709 TOTAL 



37 



A.r I. a earner., l. -> 

75 Stevenson Street Renovation 

ATTACHMENT II , FURNITURE 

PPSD PAPG MUNI TOTAL 

Infect S 32,335 $ 99,880 $ 132,215 

Usassemble/ Reassemble 

abor & Misc. Parts $ 4,500 $ 4,500 

ilectrification $ 14,575 $ 15,290. $ 29,855 



TOTAL $ 35,835 $ 114,455 $ 15,290 $ 155,530 



38 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 

Item 6 - File 99-0853 



Department: 



Item: 



Location: 

Purpose of 
License Agreement: 



Lessor: 



Real Estate Department (RED) 

Department of Telecommunications and Information 

Sendees (DTIS) 

Resolution authorizing a retroactive renewal of a Roof 
Equipment License Agreement at 555 California Street for 
DTIS. 

555 California Street 



To provide space for seven radio antennas, transmitters 
and all associated wiring and equipment, including 
electrical service, for public safety radio communications for 
the Police, Fire, Public Health, and Sheriffs Departments 
in addition to a separate local government radio system 
used by the Department of Public Works, Animal Control, 
Health Centers, and the Fire Department Auxiliary Water 
Supply System, among others. 

555 California Street Partners 



Lessee: 



DTIS 



No. of Sq. Ft.: 
Cost Per Month: 

Annual Cost: 



Increase Over Prior 
License Agreement: 



Description: 



64 square feet 

FY 1998-1999: $2,000 
FY 1999-2001: $5,000 

FY 1998-1999: $24,000 
FY 1999-2001: $60,000 



FY 1998-1999: no increase 

FY 1999-2001: $36,000 annually (150 percent) 

The subject resolution would authorize the renewal of a 
Roof Equipment License Agreement between DTIS and 555 
California Street Partners, owners of the office building 
located at 555 California Street (known as the Bank of 
America Building). The leased area would be used to 
provide space for seven radio antennas, transmitters and 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

39 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 



Term of Lease: 



Source of Funds: 



Comments: 



all associated wiring and equipment, including electrical 
service, for public safety radio communications for the 
Police, Fire, Public Health, and Sheriffs Departments in 
addition to a separate local government radio system used 
by the Department of Pubhc Works, Animal Control, 
Health Centers, and the Fire Department Auxiliary Water 
Supply System, among others. Mr. Larry Garde of DTIS 
reports that DTIS has occupied the subject space under a 
license agreement since 1987. 

Three years, retroactive to July 1, 1998 to June 30, 2001. 

For FY 1998-99, DTIS would fund the license agreement 
with monies previously appropriated in its FY 1998-99 
budget. For FY 1999-2000 and FY 2000-2001, DTIS would 
fund the lease from DTIS's annual operating budget. 

1. According to Mr. Larry Jacobson of the RED, this 
proposed resolution, which requires a retroactive clause to 
July 1, 1998, was not submitted to the Board of Supervisors 
at an earlier date because (1) an initial proposal was not 
received from 555 Cahfornia Street Partners until August 
1998, and (2) the DRE entered into a lengthy negotiation 
with 555 California Streets Partners in an attempt to 
minimize the proposed rate increase for the subject site. 

2. On May 10, 1999, the Board of Supervisors approved a 
resolution (File 99-0762) authorizing retroactive renewal of 
a Roof Equipment License Agreement between the 
Municipal Railway (MUNI) and 555 California Street 
Partners. The monthly rental rate under the MUNI Roof 
Equipment License Agreement at 555 California Street, the 
same location as the subject agreement, is S4.000 to be paid 
by MUNI to 555 Cahfornia Street Partners over the three 
year term of the agreement. 

Under the subject agreement, the new monthly rate to be 
paid by DTIS to 555 Cahfornia Street Partners would be 
S2.000 in FY* 1998-99 which is the same monthly rate as 
under the previous DTIS Roof Equipment License 
Agreement which expired on June 30. 1998. In FY 1999- 
2000 and FY 2000-01 the new monthly rate payable by 
DTIS will be $5,000 which is S3. 000 or 150 percent more 
than the S2.000 monthly rate under the previous 
agreement. Over the three year term of the agreement, a 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

40 



Memo to Finance and Labor Committee 

Ma}' 19, 1999 Finance and Labor Committee Meeting 



total of $144,000 would be paid by DTIS to 555 California 
Street Partners at an average rate of $4,000 per month, 
which is the same rate to be paid by MUNI under the 
similar license agreement recently approved by the Board 
of Supervisors. 

3. Mr. Jacobson states that the proposed average monthly 
rate of $4,000 over the three year term of the subject Roof 
Equipment License Agreement (see Comment No. 2 above) 
represents fair market value due to the rapidly growing 
demand for similar space for both public and private sector 
radio operations. Mr. Jacobson reports that the City 
occupies similar rooftop space at One Market Plaza at a 
monthly rate of $4,000, the same rate as provided for in the 
subject license agreement. 

4. According to Mr. Garde, the office building located at 
555 California is presently the only available building tall 
enough to allow the successful operation of the current 
radio system in the downtown area. Mr. Garde explains 
that no other available site would provide adequate 
clearance from physical obstructions (i.e., other buildings) 
that would hamper the necessary radio communications. 

5. The subject license agreement has an ending date of 
June 30, 2001. According to Mr. Garde, it is anticipated 
that within the next three years all of the radio 
communications services provided for under the subject 
agreement will be moved to One Market Plaza and the 
subject space at 555 California Street will not be required. 
Therefore, the subject license agreement contains a 
termination provision with 180 days prior written notice to 
the lessor. Mr. Garde advises that although public safety 
radio communications will be transitioning into the new 
Citywide 800 MHz Radio System in February 2000, 
currently being installed at One Market Plaza, the existing 
public safety radio system and equipment must remain at 
555 California for a period of three to four more months to 
accommodate any public safety units who may not have 
completely transitioned over to the new system. In 
addition. Mr. Garde reports that the separate local 
government radio system, used by the Department of 
Public Works, Animal Control, Health Centers, and the 
Fire Department Auxiliary Water Supply System, among 
others, which is also installed at 555 California Street, can 

BOARD OF SUPERVISORS 
BUDGET ANALYST 
41 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 

be co-located with the new site at One Market Plaza. 
However, according to Mr. Garde, such a move would most 
likely take two years to plan, approve, and complete. 

Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

42 



Memo to Finance and Labor Committee 

May 19, 1999, Finance and Labor Committee Meeting 

Item 7 - File 99-0856 



Department: 

Item: 

Location: 
Purpose of Lease: 



Department of Human Services (DHS) 
Department of Real Estate (DRE) 

Resolution authorizing a new lease of real property of the 
entire building at 160 South Van Ness Avenue. 

160 South Van Ness Avenue 

To provide leased space for the Department of Human 
Services (DHS), Investigations Division which is currently 
located in two separate leased buildings at 1235 Mission 
Street and 1650 Mission Street. The proposed lease 
would relocate 70 existing Investigations Division 
employees from 1235 Mission Street and 1650 Mission 
Street to 160 South Van Ness Avenue in order to 
accommodate additional program needs for DHS's Adult 
Services Division, which is also located at both 1235 
Mission Street and 1650 Mission Street. 



Lessor: 



Lessee: 



No. of Sq. Ft. and 
Rent Per Month: 



Stuart B. and Myrna J. Aronoff Revocable Trust and 
Trudy Cohn 

The City and County of San Francisco 



The proposed space at 160 South Van Ness Avenue 
consists of approximately 15,000 square feet of office and 
common area space at $1.67 per square foot per month for 
a total of $25,000 per month for the first two 3 r ears with 
increases of approximately 2 percent rate in subsequent 
vears, as follows: 



Year 

Three 

Four 

Five 

Six 

Seven 

Eight 

Nine 

Ten 



Rate per 

Square Foot 

per Month 

$1.70 

$1.75 

$1.79 

$1.83 

$1.88 

$1.93 

$1.98 

$2.03 



Rate per 

Month 

$25,625 

$26,266 

$26,922 

$27,595 

$28,285 

$28,992 

$29,717 

$30,460 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

43 



Memo to Finance and Labor Committee 

May 19, 1999, Finance and Labor Committee Meeting 



Annual Cost: 



Utilities and Janitor 
Provided bv Lessor: 



Term of Lease: 



Ri^ht of Renewal: 



$300,000 for the first two years, $307,500 for the third 
year, $315,192 for the fourth year, $323,064 for the fifth 
year, $331,140 for the sixth year, $339,420 for the 
seventh year, $347,904 for the eighth year, $356,604 for 
the ninth year and $365,520 for the tenth year. 



All costs for utilities and janitorial services would be the 
responsibility of the City. 

The proposed lease would commence upon approval of the 
Board of Supervisors and termination of the existing lease 
at 160 South Van Ness Avenue and would expire ten 
years thereafter. According to Ms. Claudine Yenegas of 
the Department of Real Estate (DRE), the entire building 
at 160 South Van Ness is currently occupied by the 
Controllers Payroll and Personnel Services Division 
(PPSD). The Controller's lease expires on June 30, 1999. 
PPSD is moving to 875 Stevenson Street (see Item 5, File 
No. 99-0809 of this report to the Finance and Labor 
Committee). However, according to Ms. Yenegas. PPSD 
will continue to lease 160 South Yan Ness on a month to 
month basis until approximately August 30, 1999, at 
which time, PPSD intends to vacate 160 South Yan Ness 
Avenue and move to the 875 Stevenson Street facility. 

The City would have the option to extend the lease for an 
additional five-year period at 95 percent of fair market 
rent. 



Source of Funds: 



Description: 



37% Federal Grant Funds, 27% State Grant Funds and 
36% General Fund which will be included in DHS's 1999- 
2000 budget. 

Ms. Rose Chow of DHS advises that the proposed lease 
would provide space for the DHS Investigations Division 
to relocate 70 existing employees, including 39 employees 
from 1235 Mission Street and 31 employees from 1650 
Mission Street to 160 South Yan Ness Avenue. 



The following Investigations Division units, which are 
currently located at 1235 Mission Street and staffed by 39 
employees to be relocated, would be moved to 160 South 
Yan Ness Avenue: 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

44 



Memo to Finance and Labor Committee 

May 19, 1999, Finance and Labor Committee Meeting 

• Appeals Unit 

• Collection Unit 

• Fraud Early Detection Unit 

In addition, the following Investigations Division units, 
which are currently located at 1650 Mission Street and 
staffed by 31 employees to be relocated, would be moved 
to 160 South Van Ness Avenue. 

• Quality Control Unit 

• Warrant Investigations Unit 

• Overpayment Unit 

Ms. Chow states that the proposed lease would allow DHS 
to relocate 70 Investigations Division employees and 
related units from 1235 Mission Street and 1650 Mission 
Street to the proposed space at 160 South Van Ness 
Avenue in order to accommodate additional program 
needs for DHS's Adult Sendees Division, which is also 
located at both 1235 Mission Street and 1650 Mission 
Street. The Attachment, provided by Ms. Chow, explains 
(1) why the proposed additional space at 160 South Van 
Ness Avenue is necessary; (2) the number of DHS 
Investigations Division employees and related units 
which would be moved from 1235 Mission Street and 1650 
Mission Street to 160 South Van Ness Avenue; and (3) 
who will occupy the space vacated at 1235 Mission Street 
and 1650 Mission Street. 

Comments: 1. According to Ms. Chow, the 39 Investigations Division 

employees and related units, which are currently located 
at 1235 Mission Street, occupy approximately 5.000 
square feet at such site, or an average of approximately 
128 square feet per employee. The 31 Investigations 
Division employees and related units, which are currently 
located at 1650 Mission Street, occupy approximately 
4,000 square feet at such site, or an average of 
approximately 129 square feet per employee. Ms. Chow 
advises that together these 70 employees would occupy 
approximately 11,470 square feet at 160 South Van Ness 
Avenue, or an average of approximately 164 square feet 
per employee. The remaining 3,530 square feet of the 
total 15,000 square feet would be occupied by three 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

A5 



Memo to Finance and Labor Committee 

May 19, 1999, Finance and Labor Committee Meeting 



conference rooms, a kitchen, a training room, a loading 
dock and a reception area. 

2. According to Ms. Venegas, the proposed rent 
represents fair market value. 

3. Ms. Venegas advises that the Lessor will pay for 
leasehold improvements at an estimated cost of $250,000. 
Such improvements include the installation of an 
elevator, carpeting, painting and American with 
Disabilities Act improvements. The leasehold 
improvements are expected to be completed within 
approximately 60 days after approval of the proposed 
resolution, according to Ms. Venegas. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

46 



ity and County of San Francisco 



Department of Human Services 



Will Lightbourne 
Executive Director 

Deputy Directors 

Bill Bettencourt 

Sally Kipper 

Jim Buick 



May 12, 1999 



To: Gabriel Cabrera 

Budget Analyst 

From: Rose Chow 

Department of Human Services 

Subject: 1 60 South Van Ness 



The Department of Human Services wish to lease 1 5,000 square foot of space to six units of our 
Investigation Division. These units are currently at 1235 Mission Street where our PAES program is 
located, and 1 650 Mission Street where our Adult Services Program resides. Both the PAES and 
Adult Services programs are expanding and require more space for their growth in each of their 
location, making it necessary for us to relocate other staff to accommodate this. It made sense to 
consolidate the Investigations Division in one location. 

At 1235 Mission Street, we will move 39 Investigations staff out freeing up approximately 5,000 
square feet. This will allow us to build the classroom component of the PAES program, which 
provide seminars that motivate clients to want to work and provide skills for job search preparation. 
The buildout will include four 500-sf classrooms, about seven 1 00-sf offices to be used for 
supervisors, interviewing and storage. Also, enough floor space to accommodate nine trainers. 

At 1650 Mission, we will move 31 Investigations staff out, freeing up approximately 4,000 square 
feet. This space will be filled with 36 new Adult Protective Services staff, which was mandated by 
the State to provide a program of services to maintain the safety of elders. These workers have not 
been hired yet. 

There is approximately 1 5,000 square feet of space at 1 60 South Van Ness occupied by about 75 
Controller's Staff. We counted 75 workstations in their space. The 1 5,000 sf includes a large 
kitchen, training room, three conference rooms, loading dock area, reception/waiting space and a 
large file storage area with a rolling filing track system. Our Investigations Staff currently occupy 
about 9,000 square feet of space but does not include kitchen, conference, interviewing, training or 
reception areas. 



I hope this is sufficient to justify our space needs. 



( 5) 557-5000 



P.O. Box 7988 
47 



San Francisco, California 94120 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 

Item 8 - File 99-0902 



Department: 



Item: 



Parking Authority 

Department of Real Estate (DRE) 

Resolution approving the second modification of an 
existing lease of real property at the Moscone Center 
Garage. 



Location: 



Purpose of Lease: 



Lessor: 



Lessee: 



Parcel No. 2 at Moscone Center Garage located at 257 
Third Street between Folsom and Howard Streets. 

Under the proposed resolution, the existing lease between 
the Parking Authority and the T.A. Fruits and 
Vegetables, a private firm, for its operation of the 
Moscone Pizzadelli, a restaurant, at Moscone Center 
Garage would be modified to (1) extend the term of the 
lease, (2) increase the space provided under the lease and 
(3) increase the minimum rent for the subject space. 

Parking Authority 

T.A. Fruits and Vegetables 



No. of Sq. Ft. and 
Rent Per Month: 



Annual Rent payable 
By T.A. Fruits and 
Vegetables to the 
Parking Authority: 



1,253 square feet at $3,698 per month (based on 978 
square feet of interior space at $3.50 per square foot per 
month and 275 square feet of exterior space at $1.00 per 
square foot per month) or 6 percent of gross receipts, 
whichever is greater. 



T.A. Fruits and Vegetables will pay the Parking 
Authority either $44,376 or 6 percent of gross receipts, 
whichever is greater. 



Percentage Increase 
Prior Lease: 



The existing lease for Parcel No. 2 in the Moscone Center 
Garage located at 257 Third Street between Folsom and 
Howard Streets is with T.A Fruits and Vegetables for its 
operation of the Moscone Pizzadelli, a restaurant. The 
space provided under the existing lease consists of 
approximately 978 square feet of interior space. Under 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

48 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 



Utilities and Janitor 
Provided by Lessor: 



Term of Lease: 



the existing lease, the annual rent is $32,628 or 6 percent 
of gross receipts, whichever is greater. The proposed 
lease modification would result in the addition of exterior 
space for the T.A Fruits and Vegetables of 275 square feet 
or an increase of approximately 28 percent, from 978 
square feet to 1,253 square feet. Under the proposed 
lease modification, the annual rent is either $44,376 or 6 
percent of gross receipts, whichever is greater. Therefore, 
the minimum annual rent of $44,376 under the proposed 
lease modification is $11,748 or approximately 36 percent 
higher than the minimum annual rent of $32,628 under 
the existing lease with T.A. Fruits and Vegetables. 



All costs for utilities and janitorial services would be the 
responsibility of T.A. Fruits and Vegetables. 

The existing lease, which was for an initial term of five 
years and thereafter extended for two five-year periods, 
expires on February 29, 2000. If the proposed resolution 
is approved, term of the existing lease would be extended 
for the five-year period of July 1, 1999 through June 30, 
2004. 



Riffht of Renewal: 



Description: 



T.A Fruits and Vegetables would have the option to 
extend the lease for an additional five-year period at the 
then prevailing market rate as determined by the DRE. 

In 1984, the Board of Supervisors approved a resolution 
authorizing the Parking Authority to lease Parcel No. 2, 
consisting of 948 square feet, in the Moscone Garage 
Center to Paul Hui, Paul Tong and David Fabian for their 
operation of a restaurant at such site (Resolution No. 719- 
84). The Board of Supervisors subsequently authorized a 
First Modification to the lease with Paul Hui. Paul Tong 
and David Fabian to change the effective date of the lease 
from December 1. 1984 to March 1, 1985 (Resolution No. 
428-85). Moreover, in 1998. after receiving the necessary- 
approval from the Parking Authority, the lessee assigned 
the lease to T.A. Fruits and Vegetables, which became 
effective on January 1, 1990. The lease contains a 
provision that states the lessee can lease or sublet the 
subject space with only the prior written approval of the 
lessor. Since this provision is contained in the initial 
lease, which was previously approved by the Board of 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

49 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 



Comments: 



Supervisors, tbe subject assignment of tbe lease to T.A. 
Fruits and Vegetables did not require Board of 
Supervisors approval, according to Mr. Gerald Fcomani of 
tbe Department of Real Estate (DRE). 

Approval of the proposed resolution would authorize the 
Parking Authority to execute a Second Modification to the 
existing lease with T.A. Fruits and Vegetables for the 
addition of 275 square feet of exterior space in the 
Moscone Garage Center. In addition, the term of the 
existing lease would be extended for the five-year period 
of July 1, 1999 through June 30, 2004, and the minimum 
rent payable by TA. Fruits and Vegetables to the Parking 
Authority would be increased by approximately 36 
percent. 

Mr. Romani states that the initial leased premises 
consisting of 978 square feet would continue to be used by 
T.A. Fruits and Vegetables for its operation of the 
Moscone Pizzadelli restaurant. Mr. Romani explains that 
T.A. Fruits and Vegetables plans to use the proposed 
additional 275 square feet to create an outdoor eating 
area for the patrons of the Moscone Pizzadelli restaurant. 

1. According to Mr. Romani, the proposed rent represents 
fair market value. 



2. Mr. Romani advises that if the proposed resolution is 
approved, the lessee will pay for leasehold improvements 
at an estimated cost of 525,000. Such improvements 
include raising the existing dropped ceiling, carpeting, 
painting, lighting, and purchasing new furniture and 
kitchen equipment. These leasehold improvements are 
expected to be completed within approximately 90 days 
after approval of the proposed resolution, according to Mr. 
R.omani. 



Recommendation: 



Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

50 



Memo to Finance and Labor Committee 

May 19, 1999, Finance and Labor Committee Meeting 

Item 9 - File 99-0908 



Department: 



Item: 



Location: 



Purpose of Lease: 



Department of Parking and Traffic (DPT) 
Department of Real Estate (DRE) 

Resolution authorizing the renewal of an existing lease of 
real property at 1975-1999 Bryant Street. 

1975-1999 Bryant Street at the northeast corner of 18 th 
Street. 

To provide space for the Department of Parking and 
Traffic (DPT), Traffic Sign Division in the facility located 
at 1975-1999 Brvant Street. 



Lessor: 

Lessee: 

No. of Sq. Ft. and 
Rent Per Month: 



Annual Rent: 



Percentage Increase 
Prior Lease: 



Utilities and Janitor 
Provided bv Lessor: 



Jack M. Keeney and Lavonne Keeney 
Citv and Countv of San Francisco 



21,162 square feet, including 16,112 square feet of 
interior space and 5,050 square feet of enclosed yard at 
$13,770 per month for the first year (based on 
approximately $0.65 per square foot per month) with an 
annual increase of 3 percent each subsequent year. 

$165,240 for the first year with an annual increase of 3 
percent each subsequent year. 



The existing 6ve-year lease for the space at 1975-1999 
Bryant Street provides a total of 21,162 square feet at 
approximately $0.40 per square foot per month, or $8,500 
per month and $102,000 annually. The proposed lease 
would result in the same square footage for the Traffic 
Signal Division of 26,212 square feet and an increase in 
the cost to the City for annual rent of $63,240 for the first 
year or approximately 62 percent, from $102,000 to 
$165,240. Under the proposed lease, the annual rent 
would increase by 3 percent each subsequent year. 



All cost for utilities and janitorial services would continue 
to be the responsibility of the City. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

51 



Memo to Finance and Labor Committee 

May 19, 1999, Finance and Labor Committee Meeting 



Term of Lease: 

Right of Renewal: 
Source of Funds: 

Description: 



Comments: 



Recommendation: 



The existing lease expires June 30, 1999. The proposed 
lease would have a term of ten years with an estimated 
commencement date of July 1, 1999 and would expire ten 
years thereafter. 

None. 

According to Ms. Julia Dawson of DPT, the proposed rent 
will be included in DPT s annual budget commencing in 
FY 1999-2000. 

As noted above, the proposed lease is a ten year renewal 
of an existing lease between the City and County of San 
Francisco and Jack M. Keeney and Lavonne Keeney for 
the facility at 1975-1999 Bryant Street. The Department 
of Parking and Traffic, Traffic Sign Division, which has 
occupied the space since 1972, designs, constructs and 
stores traffic signs at the site. The Traffic Sign Division 
currently has a total of 29 employees, including 16 
employees who work in the field and 13 employees who 
work on-site at 1975-1999 Bryant Street. The 13 
employees who work on-site at 1975-1999 Bryant Street 
occupy 2,162 square feet of space, for an average of 
approximately 166 square feet per employee. The 
remaining 19.000 square feet of the total 21.162 square 
feet is used by the Traffic Signal Division to construct and 
store traffic signs, and house shop equipment and field 
work vehicles. 

1. The attached memorandum, provided by Mr. Ken 
Chopping of the Department of Real Estate (DRE), 
explains why the lease at 1975-1999 Bryant Street 
requires a 62 percent increase in rental costs to the City. 

2. According to Mr. Chopping, the proposed rent 
represents fair market value. 

Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

52 



rn3Y-ij-iggg 16 = 20 



CCSF REAL ESTRTE DEPT 



fictacnment 



City and County of San Francisco 




Real Estate Department 

Office of the 
Director of Property 



MEMORANDUM 



TO: Harvey Rose 

Board of Supervisors 

Budget Analyst 



FROM: Anthony 

Director of 



£E£^Q-_ 



BATE: May 13, 1999 

SUBJECT: Sign Shop Lease at 1975-1999 Bryant Street 



Gabriel Cabrera of your office requested additional information on the reason for the substantial 
increase in rent for the lease renewal at 1975-1999 Bryant Street. 

The present rent of $8,500 per month was negotiated five years ago, as a fixed rent for five years. 
An increase in rent was expected but market rents in general, and especially for this type of space, 
have increased dramatically in the past two years. This area is experiencing an upgrading of older 
industrial buildings to office, multi-media studios and live/work projects which is adding to the 
upward pressure on rents. 

It is our opinion, after an extensive search for a less expensive replacement property, that the 
negotiated rent of $13,770 per month is fair market value and that the rent increase over what was 
negotiated five years ago, while substantial, is simply a reflection of current market conditions. A 
further indication of market value is the fact that the Landlord listed it for lease at $18,000 per 
month and immediately received a written offer at $15,000 per month from another party. 



kc 



K:\WnP AXnNCKSlttSKBftAJDBaahikic 



554-9890 

FAX: S52-B21B 



2S Van New Avanu*, Suite 400 



SanFrandtca,MiQ2 



53 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 

Item 10 - File 99-0909 



Department: 
Item: 



Department of Human Resources (DHR) 

Resolution approving the renewal of provisional 
appointments through December 31, 1999 for 
employees in classes for which no eligible list exists 
and who have been employed in the class more 
than three years, as required by San Francisco 
Charter Section 10.105. 



Description: 



Comments: 



Provisional appointments of City employees occur 
when there is not an eligible list available for 
appointment to permanent City positions. An 
eligible list includes all persons who passed a 
classification examination given by the Department 
of Human Resources for the specific classification. 
According to Charter Section 10.105, provisional 
appointments of City employees to classified 
positions, for which no eligible list exists, cannot 
exceed three years, unless such appointments are 
renewed with the approval of the Board of 
Supervisors and upon certification by the Human 
Resources Director that for reasons beyond her 
control the Department has been unable to conduct 
examinations for these positions. The proposed 
resolution would approve an extension of 
provisional appointments for 19 classifications, 
affecting a total of 54 employees through December 
31, 1999 located throughout the City, including at 
the Airport, Controller's Office, Department of 
Parking and Traffic, Department of Public Health, 
Department of Public Works, Juvenile Probation 
and Sheriffs Office. 

1. According to Ms. Linda Marini of the 
Department of Human Resources, DHR has 
undertaken an expedited program to reduce the 
number of long-term provisional employees in the 
City by streamlining the examination process, 
decentralizing examination functions into various 
City departments (such as the Airport, Health 
Department and Sheriff), providing more 
examinations and increasing the number of eligible 
lists for appointment of employees to permanent 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

54 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 



positions. As a result, Ms. Marini reports that DHR 
has reduced the number of long-term provisional 
employees from 1,457 employees in 1996 to the 
current number of 54 such employees in 1999. 

2. Ms. Marini notes that this new Charter Section 
10.105 provision became effective on July 1, 1996. 
Therefore, the three-year maximum term for the 
subject 54 provisional employees will terminate on 
June 30, 1999. Ms. Marini therefore reports that if 
the proposed resolution is not approved by the 
Board of Supervisors, then the 54 affected 
employees would need to be laid off since their 
provisional appointments would have exceeded the 
three-year limit. 

3. According to Ms. Marini, the DHR will not be 
able to provide the necessary examinations and 
create eligible lists for these 54 provisional 
employees to be appointed to permanent positions 
prior to the June 30, 1999 deadline and is therefore 
seeking this approval from the Board of 
Supervisors to extend these provisional 
appointments through December 31, 1999, when it 
is anticipated that eligible lists will exist for 
appointment to permanent positions. As shown in 
the Attachment provided by Ms. Marini, all of the 
examinations and eligible lists for these 54 
employees are planned to be completed by October 
31. 1999. Therefore, Ms. Marini reports that DHR 
will not be seeking any further extensions of these 
provisional appointments beyond the subject 
December 31, 1999 date. 

3. Ms. Marini notes that, if the proposed resolution 
is not approved by the Board of Supervisors, and 
these 54 provisional employees were terminated, 
their budgeted positions would still remain part of 
each departments' budget, and each of the affected 
departments would then have to recruit and hire 
new employees to fill the same budgeted positions. 
The Budget Analyst therefore notes that the 
proposed resolution should not affect the ongoing 
cost to the City for these positions. Ms. Peg 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

55 



Memo to Finance and Labor Committee 

May 19, 1999 Finance and Labor Committee Meeting 

Stevenson of the Controller's Office concurs with 
the opinion of the Budget Anatyst's Office. 

Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

56 



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PHONE ND. : 415 5574S70 



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58 



Memo to Finance Committee 

May 19, 1999 Finance Committee Meeting 



Items 11 and 12 - Files 99-0918 and File 99-0924 



Department: 
Item: 



Description: 



Public Utilities Commission (PUC) 
Water Department 

File 99-0918 - Ordinance approving the revised schedule 
of sendee fees to be charged by the Public Utilities 
Commission to retail water customers for Fiscal Year 
1999-2000. 

File 99-0924 - Ordinance approving the revised schedule 
of rates to be charged by the Public Utilities Commission 
for wholesale water service to its Suburban Resale 
Customers for Fiscal Year 1999-2000. 

The PUC establishes two separate water rate schedules. 
One schedule is for the Water Department's retail 
customers in San Francisco and its retail customers 
outside the City. The other schedule is for the Water 
Department's "Suburban Resale Customers". Suburban 
Resale Customers are, collectively, 29 water agencies, 
primarily within the Counties of San Mateo, Santa Clara 
and Alameda, that purchase water at wholesale rates 
from the San Francisco Water Department for resale to 
their customers. 

Water rate schedules for retail customers were last 
amended by the PUC effective July 1, 1996 when retail 
rates to the water users in San Francisco and outside the 
City were increased by 7.6 percent. Suburban Resale 
water rate schedules were last amended effective July 1, 
1998 when such rates were decreased by 13.0 percent in 
accordance with the terms of a 1984 settlement 
agreement described below. 

The Board of Supervisors can only approve or disapprove 
water rate schedules submitted by the Public Utilities 
Commission. The proposed water rate schedules cannot be 
amended by the Board of Supervisors. Under Charter 
Section 2.109, the Board of Supervisors may approve, or 
reject, any rate, fee or similar charge to be imposed by 
any department, board or commission. 



Board of Supervisors 
Budget Analyst 

59 



Memo to Finance Committee 

May 19, 1999 Finance Committee Meeting 



Proposition H, approved by the voters on June 2, 1998, 
mandates that Water rates and Sewer Service Charge 
rates are to remain at their current levels until July 1. 
2006, subject to the following exceptions: 

• With the concurrence of the Board of Supervisors and 
the Mayor, the rate freeze would not apply to the fees 
charged to customers located outside of San Francisco. 

• The rate freeze could be suspended if the City declared 
an emergency, as defined by the Charter. 

• The fees could be increased to repay the money 
borrowed by the City for improvements to the water 
system approved by the voters in November 1997. 
These fee increases could not exceed a total of 18 
percent. 

• The fees could be increased to repay money borrowed for 

further improvements to the water and sewer systems 
approved by the voters in the future. 

The PUC is proposing no change to its current water rates 
to its San Francisco and other retail customers. The PUC 
is, however, proposing adjustments to the charges for the 
installation of flow restricting devices for one inch or 
smaller meters (an increase from S122.37 to $125) based 
on labor cost increases and an increase to the returned 
check charge to cover the PUC's cost. The returned check 
charge is currently $15. Based on a labor cost of $15.62 
and a City Treasurer charge of an additional $10, the 
recommended returned check charge for FY 1999-2000 is 
$25. The City Attorney has issued an opinion that such 
charges, which are not related to the provision and 
consumption of water, are exempt from Proposition H. 

The PUC is also proposing an increase in rates charged to 
its Suburban Resale Customers of 34.7 percent. This 
increase is consistent with the terms of a 1984 settlement 
agreement between the Suburban Resale Customers and 
the City, and a related master water sales contract, which 
was approved by the Board of Supervisors and resolved 
litigation which had been pending since 1974. 

The settlement agreement established the method by 
which suburban resale rates are calculated each year. 
Under that agreement, cost accounting and rate setting 
are divided and based on the costs of providing water 

Board of Supervisors 
Budget Analyst 
60 



Memo to Finance Committee 

May 19, 1999 Finance Committee Meeting 



services to retail customers, as distinct from the 
Suburban Resale Customers, who purchase water from 
the San Francisco Water Department at wholesale rates. 
The City sets the wholesale water rates to recover all 
costs associated with providing water to the Suburban 
Resale Customers, plus a rate of return on all debt funded 
assets and future revenue funded assets. 

The difference between Suburban Resale water service 
revenues, and the cost computations made in accordance 
with the settlement agreement requirements, are credited 
to a "balancing account" which must be factored in to the 
rate calculation for the following year. If the projected 
balancing account value and projected revenue from 
Suburban Resale Customers exceeds or falls short of (a) 
projected annual costs, plus (b) a return on assets, for the 
Suburban Resale Customers by an amount greater than 
two percent of the sum of projected annual costs and a 
return on assets, adjustments to the Suburban Resale 
Customer rate schedules are mandated by the 1984 
settlement agreement. 

The projected July 1, 1999 balancing account value is 
estimated to be a negative $4,332,000 and the projected 
June 30, 2000 balancing account value is estimated to be 
a negative $18,006,000 based on existing Suburban 
Resale Customer rates. The PUC has therefore 
recommended an increase in Suburban Resale Customer 
rates of 34.7 percent based on the requirements of the 
Settlement Agreement, in order to eliminate the projected 
negative balance in the balancing account of $18,006,000 
as of June 30, 2000. This rate increase of 34.7 percent 
would increase projected 1999-2000 Suburban Resale 
water service revenues by $18,006,000 from $51,848,000 
to $69,854,000. 



Board of Supervisors 
Budget Analyst 

61 



Memo to Finance Committee 

May 19, 1999 Finance Committee Meeting 

The table below displays the Water Department's 
projected Revenues and Expenditures for FY 1999-2000. 

1999-2000 WATER DEPARTMENT PROJECTED 
REVENUES AND EXPENDITURES 

Beginning Operating Fund Balance $ 25,308,000 

Projected Revenues 

Retail Water Sales $ 63,452,000 

Suburban Resale Water Sales 69,854,000 

Other Revenues 14.750.000 

Total Revenues 148.056.000 

Total Sources 173,364,000 

Projected Expenditures (Subject to appropriation approval in 
the Water Department's FY 1999-2000 budget) 147.737.000 

Ending Operating Fund Balance $ 25,627,000 

Comments: 1. As previously noted, the PUC has proposed no water 

rate increases for San Francisco water users and the 
other retail customers of the Water Department. Based on 
the Water Department's projected revenues and 
expenditures, as can be seen from the table above, the 
Water Department's current unappropriated surplus will 
increase by $319,000 ($25,627,000 Ending Balance less 
$25,308,000 Beginning Balance). Without the proposed 
increase of 34.7 percent for Suburban Resale Customers, 
the Ending Balance would decrease by $18,006,000, from 
the projected $25,627,000 to $7,621,000. 

2. In accordance with the revenue requirements for 
Water Revenue Bonds, net revenues in each Fiscal Year 
must be equal to at least 1.25 times more than the 
outstanding revenue bond annual debt service due in that 
fiscal year (commonly known as the required debt service 
coverage ratio). Based on the PUC's recommended rate 
increase of zero percent for retail customers and 34.7 
percent for Suburban Resale Customers, the projected 
debt sendee coverage at the end of FY 1999-2000 is 3.07 
or 1.82 above the required debt service coverage ratio of 
1.25. Without the proposed 34.7 percent increase, the debt 

Board of Supervisors 
Budget Analyst 
62 



Memo to Finance Committee 

May 19, 1999 Finance Committee Meeting 



Recommendation: 



service coverage ratio would decrease significantly, from 
3.07 to 2.22. 

Approve the proposed ordinances. 




Harvev M. Rose 



cc: Supervisor Yee 

Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 



Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



Board of Supervisors 
Budget Analyst 
63 




City and County of San Francisco 

Meeting Minutes 

Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B. 

Goodlett Place 

San Francisco, CA 

94102^689 



Wednesday, May 26, 1999 



10:00 AM 

Regular Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Tom Ammiano. 
Members Absent: Sue Bierman. 



Meeting Convened 

The meeting convened at 10:09 a.m. 

REGULAR AGENDA 



DOCUMENTS DEPT. 

JUN 1 6 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 



990916 [Employee Health Cover agel 

Ordinance amending Administrative Code Section 16. 157, approving Health Service System plans and rates of 
contribution as adopted by the Health Service Board. (Department of Human Resources) 
5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Supervisor Ammiano; Harvey Rose. Budget Analyst; Ann Summercamp, 
Deputy Director, Health Service System; John Madden, Assistant Controller; Jean Frasier, Deputy City 
Attorney; Supervisor Yee; Mathew Hymel, Mayor's Office; Bart Duncan, Deputy City Attorney. Opposed: 
Leonard Lundgren, President, Retired Teachers Association; Kay Walker, SEIU PAC; Lane De Lara, Ann 
Tobian; Nancy Gin, 2nd Vice President, CCSF Retirees Association; Tony Sacco, Retired Firemen and 
Widows Association; Bernard Crotty; Leo Martinez, Board of Directors, Retired Firemen and Widows 
Association; Robert Pardina; John LeHane, Police Association; Jean Thomas; Earl Gilman; Grady Shawn 
Allison; Diane Hermann, Executive Board, Retired Employees. Neither: Jerry De Ryan, Labor Council; 
David Novogrodsky, Local 21. 
CONTINUED TO CALL OF THE CHAIR by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



City and County of San Francisco 



Printed at 11:45 AM 



Finance and Labor Committee 



Meeting Minutes 



May 26, 1999 



990846 [Health Care Plan and Rate Increase] 
Supervisors Ammiano. Bierman 

Hearing to consider the escalating costs of enrolling in the health care plans. 
4/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Supervisor Ammiano: Harvey Rose, Budget Analyst: Ann Summercamp, 
Deputy Director, Health Service System: John Madden, Assistant Controller; Jean Frasier, Deputy City 
Attorney; Supervisor Yee; Mathew Hymel, Mayor's Office; Bart Duncan, Deputy City Attorney. Opposed: 
Leonard Lundgren, President, Retired Teachers Association; Kay Walker, SEIU PAC; Lane De Lara, Ann 
Tobian; Nancy Gin, 2nd Vice President, CCSF Retirees Association; Tony Sacco, Retired Firemen and 
Widows Association; Bernard Crotty; Leo Martinez, Board of Directors, Retired Firemen and Widows 
Association; Robert Pardina; John LeHane, Police Association; Jean Thomas; Earl Gilman; Grady Shawn 
Allison; Diane Hermann, Executive Board, Retired Employees. Neither: Jerry De Ryan, Labor Council; 
David Novogrodsky, Local 21. 
CONTINUED TO CALL OF THE CHAIR by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



990468 [City Health Plan] 
Supervisor Yee 

Hearing to consider the City Health Plan and the increased contributions for employee and dependent 

coverage. 

3/8/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Supervisor Ammiano; Han>ey Rose, Budget Analyst; Ann Summercamp, 

Deputy Director, Health Senice System; John Madden, Assistant Controller; Jean Frasier, Deputy City 

Attorney; Supervisor Yee; Mathew Hymel, Mayor's Office; Bart Duncan, Deputy City Attorney. Opposed: 

Leonard Lundgren, President, Retired Teachers Association; Kay Walker, SEIU PAC; Lane De Lara, Ann 

Tobian; Nancy Gin, 2nd Vice President, CCSF Retirees Association; Tony Sacco, Retired Firemen and 

Widows Association; Bernard Crotty; Leo Martinez, Board of Directors, Retired Firemen and Widows 

Association; Robert Pardina; John LeHane, Police Association; Jean Thomas; Earl Gilman; Grady Shawn 

Allison; Diane Hermann, Executive Board, Retired Employees. Neither: Jerry De Ryan, Labor Council; 

David Novogrodsky, Local 21. 

CONTINUED TO CALL OF THE CHAIR by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



City and County of San Francisco 



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Finance and Labor Committee 



Meeting Minutes 



May 26, 1999 



990871 [Appropriation, Dept of Public Health-S.F. General Hospital] 
Mayor 

Ordinance appropriating $19,187,662, Department of Public Health-San Francisco General Hospital, from the 
General Fund Reserve to offset the revenue shortfall m the current fiscal year 1998-1999. 

(Fiscal impact.) 

5/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Ammiano; Supervisor Yee; Dr 

Mitchell Katz, Director, Department of Public Health; June Gutfleisch, Aide to Supervisor Bierman; Laura 

Spanjian, Aide to Supervisor Katz; Mathew Hymel, Mayor's Office; Bill Farley, Pharmacist at San Francisco 

General Hospital (SFGH); William Brady, Coalition to Save Public Health; Taejour Ahr, Resident, SFGH; 

Jamie Noone; Interns and Residents Association; Lea Curry; Ed Kinchley, Social Worker, SFGH; Michael 

Lyon; Doris Mitchell, Health Care Workers, Local 250; Dr. Colleen Townsend; Melchor Bustamante; Iris 

Biblowitz, RN 

RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



990803 [Kezar Parking Lot] 
Supervisor Brown 

Resolution authoring and approving the management agreement by and between the City and County of San 
Francisco and U.S. Parking, Inc., for the "Kezar Parking Lot" located at Stanyan and Frederick Streets. 

(Fiscal impact.) 

4/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

5/12/99, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Joel Robinson, Acting Director, Recreation and 

Park; Supervisor Ammiano; Supervisor Yee Opposed: Mark Gleason, Teamsters, Local 65. Continued to May 26, 1999. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Jackie Fong. Recreation and Park 
Department; Ben Burke, Attorney, U.S. Parking, Inc.; George Bailer, Manager, Kezar Parking Lot; 
Supervisor Yee; Joel Robinson, Acting General Manager, Recreation and Park Department; Tom Owen, 
Deputy City Attorney. Opposed: Mark Gleason, Local 665. 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



990857 [Recreation and Park Fees] 

Ordinance amending Park Code by adding Sections 12.08 approving fees for parking at the Kezar parking lot 
in Golden Gate Park. (Mayor) 

(Adds Section 12.08.) 

4/28/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

5/17/99, SUBSTITUTED. 

5/17/99, ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Jackie Fong. Recreation and Park 

Department; Ben Burke, Attorney, U.S. Parking, Inc.; George Bailer, Manager. Kezar Parking Lot; 

Supervisor Yee; Joel Robinson, Acting General Manager, Recreation and Park Department; Tom Owen, 

Deputy City Attorney. Opposed: Mark Gleason. Local 665 

RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



City and County of San Francisco 



Printed at II :4S AM on 5/2V99 



Finance and Labor Committee 



Meeting Minutes 



May 26, 1999 



990870 [Appropriation, Public Utilities Commission! 
Mayor 

Ordinance appropriating $606,006 from Water Fund Balance. $236,968 from Hetch Hetchy Fund Balance and 
$177,726 from Clean Water Fund Balance, (a total of $1,020,700) to fund the establishment and 
implementation of Public Utilities Commission Year 2000 (Y2K) Embedded System Compliance Program for 
fiscal year 1998-1999. 

(Fiscal impact.) 

5/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Han>ey Rose, Budget Analyst; Carolyn Olson. Assistant General Manager, 

Public Utilities Commission; Supervisor Yee; Supervisor Ammiano. 

RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



990934 [Appropriation, Dept. of Children. Youth and Families] 
Supervisors Ammiano. Bierman 

Ordinance appropriating $150,000. Department of Children. Youth and Families, from the General Fund 

Reserve to fund the New Conservatory Theatre Center, providing arts and health education programs for San 

Francisco youth, for fiscal year 1998-1999. 

5/10/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; George Vanberg-Wolf. New Consenaton 

Theatre Center (NCTC); Supervisor Ammiano; Supervisor Yee; Ed Decker, Executive Director, NCTC; Brad 

Pence; Business Manager, NCTC; June Gutfleisch, Aide to Supervisor Bierman. Amended to reduce 

appropriation to SI 00, 000; new title. 

AMENDED. 

Ordinance appropriating $100,000, Department of Children, Youth and Families, from the General Fund 
Reserve to fund the New Conservatory Theatre Center, providing arts and health education programs for San 
Francisco youth, for fiscal year 1998-1999. 
RECOMMENDED AS AMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



990872 [Appropriation, Police Department! 
Mayor 

Ordinance appropriating $889,000, Police Department, from the General Fund Reserve to provide additional 
funds for Workers' Compensation, installation of a "Bullet Trap" facility, and funds for the Peaceful Streets 
Program, for fiscal year 1998-1999. 

(Fiscal impact.) 

5/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Earl Sanders. Assistant Chief of Police: 

Supervisor Yee; Captain Alex Fagan, Police Fiscal Division; Gary Hoy. Department of Public Works. Bureau 

of Architecture; Mathew Hymel, Mayor's Office; Fred Howell, Department of Human Resources; John Ricker, 

Executive Director of Peaceful Streets; Supervisor Ammiano. Amended to reduce the Bullet Trap Project 

budget by $10,000; new title. 

AMENDED. 



City and County of Sun Francisco 



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Finance and Labor Committee 



Meeting Minutes 



May 26, 1999 



Ordinance appropriating $879,000, Police Department, from the General Fund Reserve to provide additional 
funds for Workers' Compensation, installation of a "Bullet Trap" facility, and funds for the Peaceful Streets 
Program, for fiscal year 1998-1999. 

(Fiscal impact.) 

RECOMMENDED AS AMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 
Absent: 1 - Bierman 



990936 [MOU Amendment, Police Officers Association] 
Mayor 

Ordinance implementing Amendment No. 3 to the 1996-2001 Memorandum of Understanding between the 
San Francisco Police Officers' Association and the City and County of San Francisco to amend salary 
provisions for represented classes and to authorize action to rectify prior retirement status for former Airport 
Police Officers, effective July 1, 1999. 

(Fiscal impact.) 

5/10/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Alice Villagomez, Deputy Director. Human 

Resources; Chris Cooney, President, Police Officers Association. 

RECOMMENDED by the following vote: 

Ayes: 2 - Ammiano, Yee 

Absent: 1 - Bierman 



990913 [Amendment to MOU, Local 261, Class 7501] 

Ordinance implementing Amendment No. 2 to the 1997-2001 Memorandum of Understanding between the 

Laborers Local 261 and the City and County of San Francisco by adding a provision to establish the step 

increase schedule for Class 7501 employees as set forth in the Memorandum of Understanding Article 111 K, 

effective July 1, 1999. (Department of Human Resources) 

5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Alice Villagomez, Deputy Director, Human 

Resources. 

RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



990914 [Amendment to MOU, Local 216] 

Ordinance implementing Amendment No. 1 to the 1998-2001 Memorandum of Understanding between the 

Teamsters Local 216 and the City and County of San Francisco to correct clerical omissions by: 1) adding a 

provision for a minimum period of time and rate of pay for certain overtime assignments; 2) incorporating rule 

changes by the City's Retirement Board regarding crediting of accrued sick leave for retirement purposes; and 

3) adding language regarding contributions to the employee tuition reimbursement fund as set forth in the 

Memorandum of Understanding, effective July 1, 1999. (Department of Human Resources) 

5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Alice Villagomez. Deputy Director. Human 

Resources. 

RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



City and County of San Francisco 



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Finance and Labor Committee 



Meeting Minutes 



May 26, 1999 



99091 5 | Amendment to MOU, Local 6, Class 7371] 

Ordinance implementing Amendment No. 1 to the 1997-2001 Memorandum of Understandmg between the 
International Brotherhood of Electrical Workers Local 6 and the City and County of San Francisco to establish 
salary schedules and salary step placement provisions for the newly created classification, Class 7371 
Electrical Transit Mechanic, effective July 1, 1999. (Department of Human Resources) 

(Fiscal impact.) 

5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Alice Villagomez, Deputy Director, Human 

Resources; Kevin Hughes, Local 6. 

RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



990077 [City Hall Cafe' Management Agreements] 

Resolution authorizing and approving a management agreement between the City and County of San 

Francisco and Events Management Inc. dba McCall and Associates, for operation of a cafe' located in the 

North Light Court of City Hall; and ratifying certain acts in connection with such management agreement and 

a management agreement with L and L, a Partnership for the operation of a cafe' located on the ground floor of 

the City Hall. (Real Estate Department) 

1/13/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

2/3/99, CONTINUED TO CALL OF THE CHAIR. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Steve Nelson, Director, Administrative 

Services. Amendment of the Whole, further amended to reflect retroactivity 

AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. 

Resolution authorizing and approving retroactively, a month to month management agreement between the 

City and County of San Francisco and Events Management Inc. dba McCall and Associates, for operation of a 

cafe' located in the North Light Court of City Hall. (Real Estate Department) 

RECOMMENDED AS AMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



990747 lAffinity Phone Card] 
Supervisor Bierman 

Resolution authorizing the City Administrator to enter into a Second Amendment to operating the Licensing 

Agreement for the San Francisco Affinity Phone Card Program. 

4/19/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; June Gutfleisch; Supervisor Ammiano. 

AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE. 

RECOMMENDED AS AMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



City and County of San Francisco 



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Finance and Labor Committee 



Meeting Minutes 



May 26, 1999 



991012 |Taxable General Obligation Bonds] 

Motion awarding Bonds and fixing definitive interest rates for $20,000,000 General Obligation Bonds 

(Affordable Housing), Series 1999A. (Mayor) 

5/17/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Laura Opsahl, Mayor's Office of Finance; Harvey Rose, Budget Analyst. 

AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE. 

RECOMMENDED AS AMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



9909 1 2 [Reserved Funds, Port] 

Hearing to consider release of reserved funds, Port, (FEMA70ES Project, Ordinance No. 87-91), in the amount 

of $1,100,000 for earthquake related capital improvements at Pier 70, San Francisco Drydock. (Port) 

5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst: Peter Dailey, Port, Maritime Director. 

Release of reserves in the amount of SI. 1 00, 000 approved. 

APPROVED AND FILED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



990427 [North Mission Quality of Life Issues] 
Supervisors Ammiano, Newsom 

Hearing to examine the quality of life issues such as homelessness, availability of substance abuse treatment 
centers, availability of low-income housing and public safety of the North Mission neighborhood area. 
3/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 
CONTINUED TO CALL OF THE CHAIR by the following vote: 

Ayes: 2 - Yee, Ammiano' 

Absent: 1 - Bierman 



CLOSED SESSION 



Deputy City Attorney Tom Owen announced the following closed session pursuant to Government Code 
Section 54956.9(a) and Administrative Code Section 67. 1 1, to confer with legal counsel regarding existing 
litigation: 

Rooker et al, v. City and County of San Francisco 
United States District Court No. C 99-1095 VRW 



[Elect Not to Disclose] 

Deputy City Attorney Tom Owen announced that the Finance and Labor Committee finds that it is in the best 
interest of the public that the Committee elect at this time not to disclose its closed session deliberations 
concerning the existing litigation. 



City and County of San Francisco 



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Finance and Labor Committee Meeting Minutes May 26, 1999 



ADJOURNMENT 



City and County of San Francisco * Prin " d " ' l:46 ** 0H 5/?S/99 



Public Library, Gov't Information Ctr.. 5" 1 Fir. 
Attn: Susan Horn, Dept. 41 



to 35V 




CITY AND COUNTY WtSBfflM. b\ OF SAN FRANCISCO 

s 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 

May 26, 1999 _ 

DOCUMENTS DEPT. 

TO: ^Finance and Labor Committee 

MAY 2 6 1999 
FROM: , Budget Analyst l333 

SAN FRANCISCO 
SUBJECT: ,May 26, 1999 Finance and Labor Committee Meeting PUBLIC LIBRARY 

Item 1- File 99-0916 

1. The proposed ordinance would amend Section 16.157 of the 
Administrative Code to approve the City's FY 1999-2000 Health Service System 
plans and rates of contribution, as adopted by the Health Service Board, to be paid 
by the members of the System. The members of the System are employees, retirees, 
and surviving spouses of former employees and retirees of the City and County of 
San Francisco, the San Francisco Unified School District, and the Community 
College District. 



Health Plans 

2. The Board of Supervisors previously adopted a resolution (File 99-0606) 
setting the City's contribution to the Health Service Fund for FY 1999-2000 at 
$180.85 per month for each member. The City's contribution was established in 
accordance with Charter Sections A8.423 and A8.428, which set the average 
contribution rate based on a survey of the 10 most populous counties in California 
(excluding San Francisco). The City's contribution of $180.85 per month ($2,170.20 
annually) represents an increase of $6.09 per month, or approximately 3.5 percent, 
from the FY 1998-99 rate of $174.76 per month ($2,097.12 annually). 

3. Once the City's contribution is established, member contributions are 
calculated by the Health Service System actuary, Rael and Letson, Consulting 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

Actuaries, in order to ensure that contributions from all sources will be adequate to 
support anticipated claims for the upcoming fiscal year. The proposed ordinance 
would establish member contribution rates for FY 1999-2000 in accordance wkh 
Charter Sections A8.421 and A8.422. Charter Sections A8.421 and A8.422 require 
approval by three-fourths of the members of the Board of Supervisors after the 
Board has secured an actuarial report of the costs and effects of any proposed 
change in the benefits of the Health Service System or rates of contribution. 
Contribution rates vary according to: (1) whether or not a member is an active 
employee, retired employee, or surviving spouse; (2) whether or not that individual 
has Medicare coverage; and (3) which of the City's four health plans that individual 
elects to join. The actuarial report and details of the member contribution rates are 
contained in the file of the Clerk of the Board. 

4. The following plans will be offered in FY 1999-2000: 

• City Health Plan* 

• Kaiser Foundation Health Plan 

• Health Net 

• PacifiCare 

* Administered by the City's Health Service System. 

5. According to Ms. Ann Sommercamp, Deputy Director of the Health Service 
System, the total amount of employer and member contributions for the health 
plans in FY 1999-2000 is estimated to be $192.6 million, which is approximately 
11.7 percent ($20.2 million) more than the projected 1998-99 combined employer 
and member contributions of $172.4 million. A summary of the estimated FY 1999- 
2000 employer and employee contributions of $192.6 is as follows: 

Percent 
Amount of Total 

(Millions) Contributions 
City and County Employer Contribution 

- Active Employees $101.1 52.5% 

- Retired Employees and Surviving Spouses 20.3 10.5% 

School District/Community College District 
Employer Contribution 

- Active Employees 

- Retired Employees and Surviving Spouses 

Total Employer Contributions 
Member Contributions 

TOTAL CONTRIBUTIONS 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



24.0 


12.5% 


1.1 


4.0% 


$153.1 


79.5% 


39.5 


20.5% 


$192.6 


100.0% 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

6. According to Ms. Sommereamp, of the total estimated employer 
contributions of $153.1 million, approximately $109.0 million or 71 percent, would 
be contributed from the City's General Fund. The remaining $44.1 million of 
employer contributions would be paid from the City's Special Funds (e.g., Airport, 
Port, Water Department and Hetch Hetchy) and from Unified School District and 
Community College District revenue sources. 

7. As shown in Table 1 below, the change in the monthly rates to be paid by 
active City employees with no dependents (single employees) for FY 1999-2000 
ranges from no change in the monthly rate to a 155 percent increase of $67.18 per 
month ($806.16 annually), depending on the health plan selected (see Comment No. 
9 for an explanation of this increase). 

A comparison of the FY 1998-99 monthly rates for to be paid by active City 
employees with the proposed FY 1999-2000 rates adopted by the Health Service 
Board is as follows: 



Table 1 

Monthly Health Plan Rates to be Paid by Active City Employees 

FY 1998-99 and FY 1999-2000 





1998-99 


1999-2000 


Monthly 


Percentage 




Monthly 


Monthly 


Increase/ 


Increase 




Rates 


Rates 


(Decrease) 


(Decrease) 


Citv Health Plan 










Single Employee 


$43.43 


$110.61 


$67.18 


155% 


Employee plus one dependent 


238.12 


317.75 


79.63 


33% 


Employee plus two dependents 


423.92 


536.71 


112.79 


27% 


Kaiser Foundation Health Plan 










Single Employee 


2.00 


4.00 


2.00 


100% 


Employee plus one dependent 


164.38 


182.58 


18.20 


11% 


Employee plus two dependents 


299.16 


330.81 


31.65 


11% 


Health Net 










Single Employee 


2.00 


2.00 


-0- 


0% 


Employee plus one dependent 


165.72 


170.36 


4.64 


3% 


Employee plus two dependents 


302.80 


311.13 


8.33 


3% 


PacifiCare 










Single Employee 


2.00 


2.00 


-0- 


0% 


Employee plus one dependent 


152.81 


162.00 


9.19 


6% 


Employee plus two dependents 


279.18 


295.15 


15.97 


6% 


BOARD OF SUPERVISORS 







BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

8. A comparison of the FY 1998-99 monthly rates to be paid by retired City 
employees who are enrolled in the Health Service System with the proposed FY 
1999-2000 rates adopted by the Health Service Board is as follows: 

Table 2 

Monthly Health Plan Rates to be Paid by Retired City Employees* 

FY 1998-99 and FY 1999-2000 



1998-99 1999-2000 Monthly Percentage 



Citv Health Plan 
Single Subscriber 
Subscriber plus one dependent 

(dependent not Medicare eligible) 
Subscriber plus one dependent 

(dependent is Medicare eligible) 



Monthly 
Rates 

$0 
194.69 

157.92 



Monthly 
Rates 

$65.11 
272.25 

228.69 



Increase/ Increase 
(Decrease) (Decrease) 



565.11 

70.77 



40% 
45% 



Kaiser Foundation Health Plan 

Single Subscriber 0% 

Subscriber plus one dependent 162.38 178.58 16.20 10% 

(dependent not Medicare eligible) 
Subscriber plus one dependent 28.31 13.62 (14.69) (52%) 

(dependent is Medicare eligible) 

Health Net 

Single Subscriber 0% 

Subscriber plus one dependent 166.07 168.36 2.29 1% 

(dependent not Medicare eligible) 
Subscriber plus one dependent 40.17 35.47 (4.70) (12%) 

(dependent is Medicare eligible) 

PacifiCare 

Single Subscriber 0% 

Subscriber plus one dependent 153.16 159.64 6.48 4% 

(dependent not Medicare eligible) 
Subscriber plus one dependent 28.64 31.54 2.90 10% 

(dependent is Medicare eligible) 

* Rates listed are those paid by subscribers who are eligible for Medicare Parts A &. B. According to 
the Health Services System, such subscribers and their dependents comprise over 90 percent of 
retired enrollees in the System. For more detailed rate schedules, see the member contribution 
rate schedules on file with the Clerk of the Board. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

As shown in Table 2 above, the change in the monthly rates to be paid by 
retired City employees with no dependents (single subscribers) for FY 1999-2000 
depending on the health plan selected ranges from a 52 percent decrease of $14.69 
per month ($176.28 annually) to an increase of $65.11 per month or $781.32 
annually -(in FY 1998-99 there was no charge to a retired single subscriber). See 
Comment No. 9 for a further explanation of this increase. 

9. Ms. Sommercamp advises that the reason contribution rates for City 
employees and retirees under the City Health Plan are increasing is in large part 
because in FY 1998-99 a portion of the costs of the City Health Plan were subsidized 
by the Plan's Trust Fund and in FY 1999-2000 no such subsidy will be made. The 
Plan's Trust Fund is made up of accumulated employer and employee contributions 
to the City Health Plan and the interest earned on those monies. For FY 1998-99, it 
was determined by the Health Service System that sufficient funds existed in the 
Trust Fund to cover projected medical claims and subsidize member contributions, 
however for FY 1999-2000 it has been determined that Trust Fund monies are not 
sufficient to both cover projected medical claims and provide a subsidy. The Health 
Services System reports that, as of June 30, 1997, tbe balance in the Trust Fund 
was approximately $29.0 million compared to $12.5 million as of June 30, 1998. 

According to the Health Services System, in FY 1998-99 employee 
contributions to the City Health Plan were subsidized by the Trust Fund at an 
average monthly rate of $42.66 per single active employee. As a result, such a 
Trust Fund subsidy of active employee contributions in FY 1998-99 resulted in City 
employer contributions for retirees in FY 1998-99 at a higher rate than in FY 1999- 
2000, according to a formula set by the Charter, which therefore decreased the 
retiree contribution. For example, in FY 1998-99, the majority of retirees received a 
City employer contribution of $166.16 compared to $102.51 in FY 1999-2000. For a 
more detailed explanation of the Trust Fund and why employee and retiree 
contribution rates have increased, see Items 2 and 3, Files 99-0846 and 99-0468 of 
this report to the Finance and Labor Committee. 

10. A description of the changes to the City Health Plan health benefits in 
FY 1999-2000 is provided in the Attachment, provided by the Health Services 
System. According to the Health Services System, the major changes in the City- 
Health Plan benefits include an annual deductible for all members (employees and 
retirees) who use a physician designated as a "preferred provider" of $250 for single 
members (currently members who use a "preferred provider" pay no annual 
deductible) and an annual prescription deductible for all members of $50 (currently 
there is no deductible for prescriptions). The Health Services System reports that no 
major benefit changes were made to the other three health plans offered by the City 
in FY 1999-2000. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

Dental Plan Benefits 



11. The Health Service Board has approved the continuance of Delta Dental 
of California, the PMI DeltaCare Dental Plan and the Pacific Union Dental Plan. 
According to Ms. Sommercamp, as of March 1, 1999, a total of 25,509 active and 
retired employees were enrolled in the existing City-paid dental plans. Under the 
dental plans, all premiums for active City employees are paid by the City (there is 
no employee contribution). Retirees, and active Community College District and 
SFUSD employees must pay their dental benefits in full according to a separate 
schedule. Total premiums projected to be paid by retirees, and active City College 
and SFUSD employees will total $2.1 million in FY 1999-2000, an increase of $0.3 
million (16.7 percent) over projected premiums for FY 1998-99 of $1.8 million. As 
shown in Table 3 below, total premiums (based on current membership) to be paid 
by the City for its active employees will be an estimated $26.1 million for FY 1999- 
2000, an increase of approximately $1.1 million (4.4 percent) over projected 
premiums for FY 1998-99 of approximately $25.0 million. A summary of these costs 
is as follows: 

Table 3 

Projected Annual Dental Plan Premiums to be Paid by the City 

for Active Citv Employees. FY 1998-99 and FY' 1999-2000 



Delta Dental of California 
PMI DeltaCare Dental Plan 
Pacific Union Dental Plan 
Total 





Projected 


Projected 




1998-99 


1999-2000 


Employee 


Premiums* 


Premiums** 


Membership 


(in millions) 


(in millions) 


23,183 


$22.9 


S23.7 


1,584 


1.5 


1.6 


742 


0.6 


0.8 



25,509 



S25.0 



* Based on March 1, 1999 enrollments at existing monthly rates. 
'* Based on March 1, 1999 enrollments at FY 1999-2000 rates. 



S26.1 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

12. A comparison of tbe FY 1998-99 and FY 1999-2000 monthly premium 
rate schedules for employer contributions of the three dental plans is as follows: 



Table 4 

Monthly Dental Plan Rates to be Paid by the City for 

Active City Employees. FY 1998-99 and 1999-2000 



Delta Dental 

Single Employee 

Employee plus one dependent 

Employee plus two dependents 

PMI DeltaCare Dental Plan 
Single Employee 
Employee plus one dependent 
Employee plus two dependents 

Pacific Union Dental Plan 
Single Employee 
Employee plus one dependent 
Employee plus two dependents 



1998-99 

Monthly 

Rates 

$46.68 

79.36 

121.37 



22.17 
36.58 
54.09 



18.55 
29.15 
46.11 



1999-2000 Monthly Percentage 
Monthly Increase/ Increase 
Rates (Decrease) (Decrease) 



$48.05 

78.96 

118.70 



22.17 
36.58 
54.09 



20.40 
33.65 
49.76 



$1.37 
(0.40) 
(2.67) 



-0- 
-0- 
-0- 



1.85 
4.50 
3.65 



3% 
(1%) 
(2%) 



0% 
0% 
0% 



10% 

15% 

8% 



13. A choice of three dental plans that are fully paid for by retirees and 
active employees who are ineligible for employer paid dental coverage will also 
continue to be offered at no cost to the City. In both FY 1998-99 and FY 1999-2000, 
the three dental plans have reduced benefits, such as a lower maximum annual 
payment and no orthodontic benefits, in order to reduce the premium cost for plan 
participants. Active employees who are not eligible for employer paid dental 
coverage include Unified School District and the Community College District 
employees. 

A comparison of the monthly premium rates to be paid by retired City 
employees and other employees who are ineligible for employer paid dental coverage 
(i.e. active employees of the Unified School District and Community College 
District) for the FY 1998-99 and FY 1999-2000 dental plans are shown in Table 5 
below: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 



Table 5 

Dental Plan Monthly Premium Rates to be Paid by Retired City Employees 

and Active Employees Who Are Ineligible for Employer Paid Coverage 

FY 1998-99 and FY 1999-2000 



Delta Dental 

Single Employee 

Employee plus one dependent 

Employee plus two dependents 

PMI DeltaCare Dental Plan 
Single Employee 
Employee plus one dependent 
Employee plus two dependents 

Pacific Union Dental Plan 
Single Employee 
Employee plus one dependent 
Employee plus two dependents 



1998-99 


1999-2000 


Monthiv 


Percentage 


Monthly 


Monthly 


Increase/ 


Increase 


Rates 


Rates 


(Decrease) 


(Decrease) 


$30.38 


$34.72 


S4.34 


14% 


60.47 


56.30 


(4.17) 


(7%) 


85.08 


84.04 


(1.04) 


(1%) 


13.69 


13.69 


-0- 


0% 


22.59 


22.59 


-0- 


0% 


33.41 


33.41 


-0- 


0% 


10.86 


13.14 


2.28 


21% 


19.35 


21.69 


2.34 


12% 


27.56 


32.07 


4.51 


16% 



Recommendation 

Since the Health Service System reports that the selection of the Health 
Service System plans and determination of the rates of member contribution 
for such plans have been conducted in accordance with the provisions of the 
City Charter, approve the proposed ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



ATTACHMENT 

4/30/99 
SECTION 3 CHANGES IN BENEFIT PLANS . 

You should carefully review the following changes in Benefit Plans before making your Open Enrollment decisions, 
(a) Changes To City Health Plan . 

(1) Annual PPO Deductible . The Annual PPO Deductible is $250 for employee only, $500 for employee 
+ 1 , and $750 for employee + 2 or more. It will be applied to all claims before payment For 
employee only, this means the member is responsible for the first $250 of medical charges. * 

(2) Catastrophic Loss . The Health Plan will pay 100% of all PPO charges once the member (or family) 
has incurred $25,000 of PPO expenses in any benefit year. This applies to the nine Bay Area PPO 
counties only. 

(3) No Fixed Dollar Copays . The PPO will no longer have copays. Rather City Plan will pay 85% of 
PPO and 50% of UCR charges for non-PPO contract rates once the annual deductible is satisfied. 
This applies to all medical charges: Hospital, physician, lab, X-ray, MRI, emergency room, etc.* 

(4) Annual Non-PPO Deductible . The annual non-PPO deductible will be $500 for employee only, 
$l,000_fpr employee + 1, and $1,500 for employee + 2. If a member uses both PPO and non-PPO 
providers, the member will need to satisfy the non-PPO deductible. The City Plan will then pay 50% 
of UCR charges per member. 

(5) Members Outside PPO . For individuals who reside outside of the nine Bay Area PPO counties, City 
Plan will continue to pay 80% of covered charges after the annual deductible of $250 for employee 
only, $500 for employee + 1, and $750 for employee + 2 or more is satisfied. 

(6) Annual Prescription Deductible . An annual prescription deductible of $50 for employee only, $100 
employee + 1, and $150 employee + 2 or more will be implemented. For employee only, this means 
the member is responsible for the first $50.00 of prescription costs. Once this deductible is met, the 
member is responsible for a $9 (generic) or $18 (brand) copayment for a 30-day supply for each 
prescription. 

^r After the annual prescription deductible is met, the mail order drug benefit copayment is $18 

(generic) and $36 (brand) for a 90-day supply. No controlled substances can be ordered via 
mail order. 

^F (7) Use of Brand Instead of Generic If yon have a prescription for a brand name drug and there 
is a generic equivalent available, the drug will be filled using the generic If the physician 
and/or patient requests the brand name, the member is responsible for the difference between 
the generic and brand name drug. 

(8) Drug Utilization Review . A Drug Utilization Review (DUR) program will be instituted July 1, 1999. 
This program will determine appropriateness of prescribed medicine. This will prevent prescriptions 
being filled when contraindicated conditions are noted. It will also monitor appropriate dosage. 

(9) Acupuncture and Chiropractic . The acupuncture and chiropractic (PPO and non-PPO) payment is 
50% of charges once the annual deductible has been satisfied. The annual limit on acupuncture and 
chiropractic benefits is $1,000 per year for each benefit. 



* The local network PPO consists of the nine (9) Bay Area counties: Alameda, Contra Costa, Marin, Napa, San 
Francisco, San Mateo, Santa Clara, Solano and Sonoma. These rules apply to the nine Bay Area PPO counties only. 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

Items 2 and 3 - 99-0846 and 99-0468 



Items: Item 2, File 99-0846: Hearing to consider the escalating 

costs of enrolling in the City's health care plans. 

Item 3, File 99-0468: Hearing to consider the City Health 
Plan and the increased contributions for employee and 
dependent coverage. 

Description: On May 26, 1999, the Finance and Labor Committee will 

consider an ordinance (see Item 1, File 99-0916 of this report 
to the Finance and Labor Committee) amending the 
Administrative Code to approve (a) the City's four health 
plans and three dental plans and (b) the rates of contribution 
to be paid by the members of the Health Service System for 
FY 1999-2000. The members of the System are employees, 
retirees, and surviving spouses of former employees and 
retirees of the City and County of San Francisco, the San 
Francisco Unified School District, and the Community 
College District. (The rates of contribution to be paid by the 
City (the employer) were previously approved by the Board of 
Supervisors - File 99-0606.) 

At the request of the Budget Analyst, the Health Service 
System has prepared a comparison of the monthly employer 
and member rates paid for the City's Health Plan in FY 
1997-98, FY 1998-99, and those proposed for FY 1999-2000, 
shown as Attachment I to this report. As shown in 
Attachment I, the increase in the monthly rate paid by single 
employee members is $89.49 (424 percent), from $21.12 in 
FY 1997-98 to $110.61 under the proposed FY 1999-2000 
rates. The increase in the monthly rate paid by single retired 
members is $65.11, from no charge in FY 1997-98 to $65.11 
under the proposed FY 1999-2000 rates. 

Attachment II is a memorandum from the Health Service 
System which contains an explanation of why FY 1999-2000 
costs to enroll in the City's health plans have increased and 
the steps the Department is taking to control such costs. 
According to the Health Service System, rising costs are due 
to increasing health plan costs, the elimination of the Trust 
Fund subsidies to the City's Health Plan, and high 
utilization of expensive medical treatments. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

10 



Attachment I 



Health Services Historic Data on Active Employees 

1997/96 Employee Employer Truei Total Cost 



Employee 
Employee *1 
Employee +2 



21.12 170.59 42.66 234.37 

170.09 17059 72.57 413.25 

279.5 170.59 194.46 644 55 



1998/99 



99/2000 



Employee 


43.43 


174.76 


40 64 


258.B3 


Employee »1 


238.12 


174.76 


35.58 


446 46 


Employee +2 


423.92 


174.76 


32.88 


631 56 



Employee 


110.61 


180 85 


none 


291.48 


Employee +1 


317.75 


180.65 


none 


496.60 


Employee +2 


536.71 


180.85 


none 


71756 



Health Services Histonc data tor Retirees on Medicare 
1997/98 Retiree City 



Retiree Medicare (MC) 
Retiree MC -M 
Retiree MC-HMC 



14824 
148.97 148.24 
127.47 14824 



Trust 



Cost 



3.78 148.24 

26.13 323 34 

8.06 283.77 



1998/99 



Retiree Medicare (MC) 





166.16 


5.57 


171.73 


Retiree MC *1 


194.69 


16616 


1063 


371 48 


Retiree MC+1MC 


157.92 


166.16 


9.63 


333.71 



1999/2000 



Retiree Medicare (MC) 


65.11 


102.51 


none 


167.62 


Retiree MC +1 


272.25 


102.51 


none 


374.76 


Retiree MC +1MC 


228.69 


102.51 


none 


331.20 



Analysis: Per Charter Retirees should pay what the active employees less MediCare costs (43.80) 
Effective 1/1/99 Medicare is $45.50. The City must contribute the difference between trie health 
cost and this formula. If you subsidy active, retirees would pay that subsidized rate. City will 
pay the additional differential. 



cAiarvey2.xls 



1 1 




Attachment II 
Page 1 of 2 

HEALTH SERVICE SYSTEM 

A DIVISION OF THE DEPARTMENT OF HUMAN RESOURCES 

CITY AND COUNTY OF SAN FRANCISCO 



May 21, 1999 



Board of Supervisors 

#1 Dr. Carlton B. Goodlett Place 

City Hall, Room 244 

San Francisco, CA 94102 



SUBJECT: Health Insurance Costs 

Honorable Members of the Board of Supervisors, 

As part of your review of the proposed ordinance to approve the City's FY 1999-2000 Health Service 
System (HSS) plans and rates of contribution, you have requested an overview of why health insurance 
costs are increasing. 

While medical inflation has been relatively stable for the past 4-5 years, there has been an upward trend 
in this indicator. A large factor in the moderate trend has been the expansion of managed care and 
Health Maintenance Organizations (HMO's) like Kaiser, HealthNet, and PacifiCare. Nevertheless, the 
costs are increasing. HSS increases for the HMO's varied from 3.5% to 12%. However, Plan 1 did not 
have the managed care controls in place that other plans did. This year, Health Service Board (HSB) 
voted to realign cost to what the actuarial cost of the plan is, and, in addition, not to subsidize Plan 1 
due to a significant decrease in net assets. 

The purpose of the HSS Trust Fund is to cover all possible liability stemming from medical claims for 
Plan 1 and premiums due to other providers. In addition, the Health Service Board is charged to ensure 
that contributions are adequate to support the cost of medical care to our members. This year the HSB 
had an independent outside actuary review the plans and calculate the rates for City Plan 1 as well as 
suggest plan design changes. 

The City Health Plan is a self-insured plan, which means it is funded entirely through premiums. In the 
past few years, Plan 1 paid out more in claims than were received in premiums. The driving factor in 
the rise is attributed to high utilization in various areas, such as catastrophic illnesses, renal dialysis, 
growth in technology, prescription drugs, etc. This year Plan 1 had 50 catastrophic cases that exceeded 
$6 million in medical claims. All of these services, by themselves, are very expensive. There has also 
been a structural bacldash by providers. 

This week the CALPERS Board announced the rate increases for their Health Maintenance 
Organizations (HMOs). The plan costs will rise 9.8% overall, with the highest increase for Kaiser at 
11.7%. I feel quite certain that next year's rates will also escalate for HSS. 

1145 MARKET STREET SAN FRANCISCO. CA 94103-1523 
Administration (415) 554-1737 



Attachment I I 
^age ^ of 2 — 



In response to your query regarding what steps the Health Service Board is taking to address the rising 
Plan 1 costs. Health Services is: 

■ implementing plan design changes which will lower the projected higher premium by $50/month. 

■ Changing the preferred provider/pharmacy benefit management vendors to maximize efficiency. 

■ Attempting to control prescription costs by reducing unnecessary purchases of prescriptions; 
implement mandatory generics where available, emphasize mail order services for maintenance 
drugs, implement Drug Utilization Review, and consistent copays for 30-day supply instead of 90- 
day supply. 

■ Discontinue the practice of additional subsidies from Trust Fund interest/principal or cost shifting, 
which in the past gave a false sense that health costs were free since it significantly reduced 
members' health deduction. 

The steps the HSB "implemented are needed to keep the City Plan viable. In fact, the premiums charged 
by the Plan are based on the previous year's activity - what truly was the cost to run the Plan, along 
with the medical inflation trend factor. The major changes affecting employees and retirees this year is 
that the HSS Trust Fund will not subsidize the premiums this year. 

If you need any additional information, please feel free to contact me. 

Respectfully submitted. 



Ann Sommercamp 

Deputy Director, Human Resources 

Health Service System 



AS:fnu 
Budgets? 1 



1 r> 



Memo to Finance Committee 

May 26, 1999 Finance Committee Meeting 

Item 4 -File 99-0871 

Department: Department of Public Health (DPH) 

Item: Supplemental Appropriation in the amount of $19,187,662 for 

San Francisco General Hospital (SFGH). 

Amount: $19,187,662 

Source of Funds: General Fund Reserve 

Description: The projected budget deficit for all of the Department of Public 

Health, including the Community Health Network and 
Population, Health and Prevention, was first reported by the 
Controller in his six month report, issued on February 9, 1999. 
The actual current total projected deficit for SFGH is 
$27,096,716 resulting from a total revenue shortfall of 
$30,613,611 less expenditure savings of $3,516,895. However, 
this deficit is offset by net savings in other Divisions of the DPH 
amounting to $7,909,054 thereby reducing the overall projected 
DPH deficit to $19, 187,662. Net General Fund savings from the 
other Divisions of DPH will be transferred to SFGH at the close 
of Fiscal Year 1998-99 to make up for the total SFGH deficit. 

The following table shows projected surpluses and deficits for 

the various divisions of DPH. 

Surplus 

Community Health Network (Deficit) 

San Francisco General Hospital $(27,096,716) 

Laguna Honda Hospital (5,599,962) 

Primary Care 845,994 

Forensics 

Community Health Network Subtotal $(31,850,684) 
Population, Health and Prevention 

Central Administration $ (90,251) 

Community Health 1,525,236 

Mental Health 2,424,195 

Substance Abuse 3.203.880 

Population, Health and Prevention Subtotal $ 7.063.060 

Total Deficit $(24,787,624) 

Previously Approved Laguna Honda Hospital 

Supplemental Appropriation 5,599.962 

Total Department of Public Health Remaining Deficit $(19, 187,662) 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

14 



Memo to Finance Committee 

May 26, 1999 Finance Committee Meeting 



Detailed projections for each of the DPH Divisions summarized 
in the table above are shown below. 



Division 


REVENUES 


EXPENDITURES 


TOTAL 


Revised 

H UCllM-l 


Current 
Projection 


Surplus/ 

(DeficMI 


Revised 
Budget 


Current 
Protection 


Surplus/ 

(Deficit) 


Surplus/ 

(Deticlti 


Community Health 


Network 


$435,038,184 
114.176.983 


$ (30.613.611) 
(7.765.192) 


$465,651,795 
121.942.175 


$462,134,900 $ 
119.776.945 


3.516.895 
2.165.230 


$ (27.096.716) 
(5.599.962) 


SFGH 

Laguna Honda 
Primary Care 
Forensics 
Subtotal 


$465,651,795 
121.942.17S 
44.994.719 


42.299.280 


(2.695.439) 


44.994.719 


41 453.286 


3.541.433 


845.994 


22.157.197 
654.745.88C 


22.124.138 
613.638.585 


(33 059) 


22 157197 
654.745.886 


22.124.138 
645.489,269 


33.059 
9.256.617 



(31.850.684) 


(41.107.301) 








28.569 


19.168.863 
56.848.151 


19.287.683 
54 575.559 


(116.820) 
2.272.592 


(90.251) 
1.525.236 


Population Health 


& Prevention 


19.197.432 


Central Admin 
Community Health 
Mental Health 


19.168.663 
56.848.151 


56.100.795 


(747 356) 


1S6.501.384 


151.869.399 

49.639.222 


(4.631.985) 

7 36.500 

(4.614.272) 


156. S01. 384 


149.445 204 


7.056.180 


2 424.195 
3.203 880 
7.063.060 


Substance Abuse 


48.902.722 


48 902.722 
281.421.120 


46,435.342 


2 467.380 


Subtotal 
Subtotal DPH 

LHH Supplemental 


281.421.120 


276.806.948 


269.743.788 


11.677.332 






(45.721.573) 
5 599 962 






20.933.949 



(24.787.624) 
5 599 962 


936.1(7. 006 


890.445.433 


936.167.006 


915.233.057 





5599. 962 












936.167.006 






(19.187.662) 


Total DPH 


936.167.006 


896.045.395 


(40.121.611) 


91S.233.057 


20.933.949 



The Attachment to this report provides a detailed description of 
the surpluses or deficits in each DPH Division and the programs 
that were affected. 



This is the third Supplemental Appropriation that has been 

submitted for DPH this year. Prior Supplemental 
Appropriations are listed below: 

Mental Health - File 99-0404 (Finally Approved April 26, 1999) $ 1,158,352 
Laguna Honda Hospital - File 99-0506 (Finally Approved 

May 10, 1999) 5,599,962 

This Proposed Supplemental Appropriation 19.187.662 

Total General Fund Supplemental Appropriations $ 25.945,976 



Comments: 



1. The Budget Analyst has reviewed FY 1998-99 detailed 
revenue projections for SFGH. The projected revenue shortfall of 
$30,613,611 is largely comprised of certain one time deficits due 
to prior year Federal audit adjustments which disallowed 
Medicare claims during prior years totaling $5.3 million. 
Additionally, SFGH has had a higher than anticipated patient 
census comprised of medically indigent individuals, with no 
medical coverage or MediCal eligibility that result in no revenue 
to SFGH. This has resulted in the diversion of MediCal eligible 
persons, that do produce revenue for SFGH. to other hospitals in 
the City. Ms. Monique Zmuda anticipates that the ongoing net 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



15 



Memo to Finance Committee 

May 26, 1999 Finance Committee Meeting 

revenue impact, after adjustments for rate changes and other 
revenue increases, will be a reduction in SFGH revenue of 
approximately $17.0 million in FY 1999-2000. 

2. Based on these recent SFGH revenue trends and normal 
increases to SFGH expenditures, it is highly likely that future 
year SFGH budgets will require significantly greater General 
Fund support to maintain service levels. The SFGH original FY 
1998-99 budget included a General Fund subsidy of $13,720,000. 
This supplemental appropriation of $19,187,662 increases the 
General Fund subsidy by 139.8 percent to a total of $32,907,662. 
However, if offsetting net savings totaling $7,909,054 in other 
Divisions of Public Health had not been achieved, the increased 
General Fund subsidy for SFGH would be $27,096,716, or an 
increase of 197.5 percent. 

3. The Budget Analyst has reviewed the DPH deficit projections 
and the supporting detailed revenue projections for SFGH. 
Based on the financial information submitted by the DPH, the 
Budget Analyst concurs with the projected DPH deficit of 
$19,187,662. 

Recommendation: Approve the proposed supplemental appropriation. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

16 



Attachment - Page 1 of 4 



Projected FY 1998-99 Year-End Surplus/Deficit 



Division 


REVENUES 


EXPENDITURES 


TOTAL 


Revised 
Budget 


Current 
Projection 


Surplus/ 
(Deficit] 


Revised 
Budget 


Current 
Protection 


Surplus/ 


Surplus/ 


IDedcIt) 


(Deficit) 


Community Health 
SFGH 


Network 
$465,651,795 






S465.651.795 
121.942.175 






S (27.096.716) 

(5.599 962) 

845.994 


5435.038.184 
114.176.983 
42.299.280 
22.124.138 


S (30,613.611) 
(7.765.192) 
(2.695.439) 


5462.134.900 S 
119.776.945 
41 453.286 


3.516.895 
2.165.230 
3.541.433 


Laguna Honda 


121.942.175 


Primary Care 

Forensics 

Subtotal 

Population Health 
Central Admin 


44.994.719 

22,157,197 


44.994.719 


(33 059) 


22.157.197 


22 124 138 


33.059 
9.256.617 



(31.850.684) 


654.745.8S6 


613.638.585 


(41.107.301) 


654.745.886 


645.489.269 


& Prevention 
19.166.863 


19.197.432 
56.100.795 
151.869.399 






28.569 

(747.356) 

(4 631.985) 


19.168.863 
56.848.151 
156.501.384 


19.287.683 
54.575.559 
149 445.204 


(118.820) 
2.272.592 

7.056 180 


(80.251) 
1.525.236 
2 424 195 


Communily Heallh 
Menial Health 
Substance Abuse 
Subtotal 


56.848.151 
156.501.384 
48.902.722 


49 639.222 


736 500 


46.902 722 


46 435 342 


2.467.380 


3.203 880 


281.421.120 


276.806.848 


(4.614.272) 


281.421.120 


269.743.788 


11.677.332 


7.063.060 




890.445.433 


(45.721.5731 


936.167.006 








Subtotal DPH 

LHH Supplemenlai 
Total DPH 


936.167,006 



936.167.006 


915.233.057 


20.933.949 



20.933.949 


(24.787.624) 
5 599 962 


5 599.962 
896.045.395 


5 599,962 
(40.121.611) 








(19.187.662) 


936.1(7.006 


915.233.057 













COMMUNITY HEALTH NETWORK 

San Francisco General Hospital: Current projections show a year-end shortfall of S27,096,716. 

Revenues are projected to be $30,61 3,61 1 under budget due to: 

• a 51,800,000 combined deficit for Short Doyle and Short Doyle Medi-Cal revenues 
due to lower than expected reimbursement for acute inpatient psychiatric services; 

• a $8,998,316 surplus in Medi-Cal revenues due to higher than expected MAA/TCM 
revenues ($4.1 million) and other Medi-Cal revenues ($4.9 million). A portion of this 
revenue surplus is offset by the shortfall associated with uncollectible accounts; 

• a $11,558,149 deficit in Medicare revenues primarily resulting from additional 
contractual allowances and reductions in current year revenues for current and prior 
year audit adjustments. Contractual allowances are reductions to revenues reflecting 
actual reimbursement rather than patient charges; 

• a $14,025,821 deficit in patient revenues based on year-to-date actual revenue; 

• a $5,524,035 surplus in miscellaneous revenues primarily due to capitation fees 
which are posted to this account; 

• a $2,248,008 surplus from higher than anticipated Realignment revenue ($3.1 
million) offset by reduce Prop 99 revenues (-$851,992); and 

• a $20,000,000 shortfall in revenues associated with uncollectible accounts. 

Expenditures are projected to be under budget by S3. 5 16.895 due to: 

• a SI. 077.932 deficit from salaries and fringe benefits resulting from increased per 
diem and overtime expenditures to provide for high patient census that is above the 
level budgeted; 

• a $2,250,000 deficit in contractual expense primarily due to increased expenses for 
UC (-$1.2 million) and additional work order expenses (-$1.7 million) offset by 

SOURCE: DEPARTMENT OF PUBLIC HEALTH REVENUE AND EXPENDITURE REPORT 

MAY 4. 1999 



17 



Attachment - Page 2 of 4 

expenditure savings in marketing ($650,000). Work order expenses will be offset by 
an equivalent work order recovery; 

• a $700,000 surplus in materials and supplies based on actual year-to-date expenses; 

• a $3,444,827 surplus in equipment expense due to: 

• savings in prior year expenses carried forward ($1,643,000); 

• deferred equipment ($405,000); 

• lower than expected equipment lease payments ($267,827); 

• equipment that will be lease financed ($507,000); 

• deferred capital ($ 1 50,000); and 

• the close out of capital balances ($472,000); 

• a $2,700,000 savings in miscellaneous expenses due to savings from delayed start up 
of the EHSS insurance program ($3.5 million) offset by additional workers' 
compensation expense (-$0.8 million). 

Laguna Honda Hospital: Current projections show no year-end surplus or deficit, assuming 
approval of $5.6 million in General Funds contained in a supplemental appropriation request. 
The $5.6 million is the estimated amount that the Board of Supervisors will approve. 

Revenues are projected to be $7,765,192 below budget due to: 

• a $7,343,128 deficit in Medi-Cal revenues primarily due to reduced census necessary 
to comply with the Plan of Correction; 

• a $1,091,224 deficit in Medicare revenues primarily due to reduced acute admissions 
and reduced SNF census; 

• a $704,470 surplus in patient revenues due to higher than expected volume of self pay 
patients; and 

• a $35,310 deficit in other miscellaneous revenues primarily due to a decrease in 
cafeteria meal sales. 

Expenditures are projected to be under budget by $2,165,230 due to: 

• a $1,826,073 savings from salaries and fringe benefits resulting from increased salary 
savings due to attrition; 

• a $75,000 deficit in contractual expense resulting from unbudgeted facility planning 
expenses; 

• a $350,000 deficit in materials and supplies due to additional purchases to comply 
with the Plan of Correction; 

• a $250,000 savings in equipment as a result of deferred purchases; 

• a $514,157 surplus in miscellaneous expenses from capital ($1,144,000) offset by 
additional legal fees and workers compensation expense (-$629,843). The surplus 
from capital assumes savings from the roof replacement project ($1,201,000), the 
psych cohort unit ($400,000) offset by additional facilities maintenance expense for 
DOJ interim measures (-$457,000). 

Primary Care: Current projections show a year-end surplus of $845,994 

Revenues are projected to be $2,695,439 under budget due to: 

SOURCE: DEPARTMENT OF PUBLIC HEALTH REVENUE AND EXPENDITURE REPORT 

MAY 4. 1999 

18 



Attachment - Paee 3 of 4 

• a $3,765,823 deficit in Medi-Cal primarily due to lower than expected FQHC 
revenue; 

• a 5801,553 surplus in Medicare resulting from increased patient volume; 

• a $39,948 surplus in Patient revenues; 

• a $228,883 surplus in miscellaneous revenues based on actual year-to-date revenues 
received. 

Expenditures are projected to be under budget by $3,541,433 due to: 

• a $1,605,410 surplus from salaries and fringe benefits resulting from the hiring freeze 
imposed in the Fall; 

• a $1,920,000 surplus due to savings in deferred capital ($1.5 million) and equipment 
($0.4 million) included in the Department's expenditure reduction plan; and 

• a $16,023 surplus in miscellaneous expenses. 

Forensics: Current projections show no year-end surplus or deficit. 

Revenues are projected to be $33,059 under budget due to: 

• a $5,000 surplus in miscellaneous revenues; and 

• a $38,059 deficit in other resulting from work order recoveries that will be offset by 
equivalent expenditure savings. 

Expenditures are projected to be under budget by $33,059 due to: 

• a $36,442 savings from salaries and fringe benefits based on actual year-to-date 
personnel expense and reduced work order expenses; 

• a $84,457 savings in contractual expense; 

• a $358,591 deficit in materials and supplies primarily due to increased expense for 
pharmaceuticals; and 

• a $270,751 savings in miscellaneous expenses primarily due to deferred equipment 
purchases. 

POPULATION HEALTH AND PREVENTION 

Central Administration: Current projections show a year-end deficit of $90,251. 

Revenues are projected to be $28,569 over budget due to: 

• a $29,146 surplus in Medi-Cal revenues primarily from prior year revenues; and 

• a $577 deficit in miscellaneous revenues. 

Expenditures are projected to be over budget by $1 1 8.820 due to: 

• a $266,820 deficit from salaries and fringe benefits based on actual year-to-date 
personnel expense; 

• a $16,000 surplus in materials & supplies; 

• a $60,000 surplus in equipment; and 

• a $72,000 surplus in other miscellaneous expenses primarily due to deferred capital 
($50,000) that is included in the Department's expenditure reduction plan. 

SOURCE: DEPARTMENT OF PUBLIC HEALTH RE\F1NUE AND EXPENDITURE REPORT 

MAY 4. 1999 

19 



Attachment - Page 4 of 4 

Community Health: Current projections show a year-end surplus of SI, 525,236. 

Revenues are projected to be 5747,356 under budget due to: 

• a 5466,245 surplus in Medi-Cal revenues primarily resulting from higher than 
expected revenues from the CCS program in Maternal and Child Health; 

• a 549,703 surplus in Medicare revenues primarily from the TB clinic; 

• a 5341,322 deficit in patient revenues primarily from the CCS program that will be 
offset by expenditure savings for contractual services; 

• a 5619,767 deficit in miscellaneous revenues due to lower than expected fee revenues 
from BEHM; and 

• a 5302,215 deficit in work order recoveries that will be offset by an equivalent 
expenditure savings in salaries. 

Expenditures are projected to be under budget by 52,272,592 due to: 

• a 51,170,684 savings from salaries and fringe benefits based on actual year-to-date 
personnel expense; 

• a 5992,908 surplus in contractual services from the CCS program 

• a 531,000 surplus in materials and supplies; and 

• a 578,000 surplus in miscellaneous expenses. 

Mental Health: Current projections show a year-end surplus of 52,424,195. This assumes 
approval of 51.1 million in General Funds for a supplemental appropriation to offset increased 
pharmacy expenses. 

Revenues are projected to be 54,631,985 below budget due to: 

• a 5213,000 surplus in Short-Doyle revenue; 

• a 52,300,000 deficit in Short-Doyle Medi-Cal revenue for acute psychiatric services 
at SFGH (-51.8 million) and for the EPSDT program (-50.5 million). Both of these 
revenue shortfalls will be offset by expenditure savings; 

• a 51,188,000 deficit in Medi-Cal revenue primarily due to delays in opening the 
adolescent Mental Health Rehabilitation Facility (-50.7 million) and less than 
anticipated revenue for pharmaceuticals (-50.5 million). The revenue loss associated 
with delays in opening the MHRF will be offset by savings in contractual services 
expense; 

• a 51,000,000 deficit in Medicare revenues resulting from lower than expected 
reimbursement; 

• a 563,649 deficit in Patient revenues; 

• a 5249,288 deficit in miscellaneous revenues based on actual year-to-date revenues; 
and 

• a 544,048 deficit in work order recoveries that will be offset by equivalent 
expenditure savings. 



SOURCE: DEPARTMENT OF PUBLIC HEALTH REVENUE AND EXPENDITURE REPORT 

MAY 4. 1999 

20 



Memo to Finance and Labor Committee 

Ma>' 26, 1999 Finance and Labor Committee Meeting 

Item 5 - File 99-0803 

Note: Tbis item was continued by the Finance and Labor Committee at its meeting 
of May 12, 1999. 

Department: Recreation and Park Department (RPD) 

Item: Resolution authorizing and approving a management 

agreement by and between the City and County of San 
Francisco and U.S. Parking, Inc., for U.S. Parking Inc. to 
operate Kezar Parking Lot located at Stanyan and Frederick 
Streets. 



Location: 

Purpose of 

Management 

Agreement: 



No. of Sq. Ft. 
Description: 



Stanyan and Frederick Streets 



To provide for the operation of a City-owned surface parking 
lot with a capacity of 341 vehicles. 

107,440 square feet 

The proposed subject management agreement between the 
Recreation and Park Department (RPD) and U.S. Parking, 
Inc. would authorize U.S. Parking. Inc. to operate the Kezar 
Parking Lot, a Cit}"-owned property, accommodating 341 
vehicles at Stanvan and Frederick Streets. 



The current lessee, City Parking Company, has been 
operating the Kezar Parking Lot on a month-to-month basis 
since their 5-year lease agreement with the Recreation and 
Park Department expired on May 31, 1992. According to Mr. 
Chris Mack of the Recreation and Park Department, based 
on 12.5% of monthly revenues of up to $16,167 and 10.57% of 
monthly revenues over $16,167, City Parking Company paid 
the RPD approximately $60,000 annually in rent during 
Fiscal Year 1997-1998 under the existing month-to-month 
lease agreement. The budgeted annual rental payment to 
the City for Fiscal year 1998-1999 is $60,000, according to 
Mr. Mack. 

This subject resolution would authorize a management 
agreement, as opposed to a lease agreement. As noted above, 
under the existing lease agreement, the City Parking paid 
RPD rent in the form of a percentage of monthly gross 
revenues. Under the proposed management agreement, all 
parking revenues from the Kezar Parking Lot would be 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



21 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 



Estimated Annual 
Revenues: 



deposited daily into an account controlled by the City and, 
from that account, RPD would pay U.S. Parking Inc. a fixed 
monthly management fee of $17,021 for the operation of the 
parking lot. Mr. Mack reports that, per the proposed 
management agreement, U.S. Parking would also provide 
approximately $55,000 in capital improvements to the lot 
including an attendant shelter, state-of-the-art ticket 
dispensing, card readers, and revenue collection/monitoring 
equipment. Under this management agreement, the City 
would keep all of the revenues instead of receiving a 
percentage of gross revenues. 

$240,000 ($20,000 per month) under existing rates. 
$492,288 ($41,024 per month) under proposed rates. 
(See Comment No. 2 below) 



Increase in Annual 

Revenues: $180,000 under existing rates. 

$432,288 under proposed rates, (see Comment No. 2 below) 

Term of Agreement: Five years, commencing on the first day of the month 
immediately following the Board of Supervisors approval of 
the proposed lease. In addition, on and after the 30-month 
anniversary of the effective date of the subject management 
agreement, RPD would have the right to terminate the 
subject agreement, with or without cause, with at least 180 
davs written notice. 



Right of Renewal: None. 



Insurance 
Provision: 



U.S. Parking, Inc. would be required to maintain Garage 
Liability and Garage Keeper's Insurance with a limit of not 
less than $1,000,000, in addition to Workers Compensation, 
Comprehensive General Liability and Comprehensive 
Automobile Insurance. 



Comments: 



1. On November 10. 1998, the Department of Real Estate 
issued an Invitation for Bids (IFB) to operate the Kezar 
Parking Lot and received eight bids on December 17. 1998. 
The Attachment to this report, provided by the RPD. lists the 
eight companies that responded to the IFB and the bid 
submitted by each. The bid amounts represent the monthly 
management fee payable by RPD to the parking operator. As 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

22 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 



noted in the Attachment, U.S. Parking, Inc. submitted the 
lowest monthly management fee bid of $17,021. 

2. According to Mr. Mack, the subject management 
agreement would increase annual revenues from the Kezar 
Parking Lot by $180,000 annually from the $60,000 in 
revenue budgeted for FY 1997-98 to annual revenues of 
$240,000 based on existing parking rates, an increase of 300 
percent. This increase results simply because the RPD will 
receive all parking revenues and pay a management fee for 
operation of the parking lot instead of receiving a percentage 
rent based on a lease agreement that began in 1987 and 
expired in 1992. 

3. According to Mr. Mack, RPD will provide improvements 
to the lot including re-surfacing, striping, and installation of 
bike lockers in the first year of the subject management 
agreement and that such improvements are estimated to cost 
$25,000. 

4. Section 7.1 of the proposed management agreement 
contains the following language: 

"Manager [of the Kezar Parking Lot] shall retain the 
personnel employed at the [Kezar Parking] Lot by the 
prior Manager who have a minimum of six (6) months 
service at the [Kezar Parking] Lot unless any such 
personnel are terminated for just cause. 
Notwithstanding the foregoing, if Manager has a 
collective bargaining agreement with its employees, 
such retained personnel shall be subject to the 
termination provisions under such collective ' 
bargaining. In the event Manager retains personnel 
employed at the [Kezar Parking] Lot by the prior 
Manager for more than sixty (60) days from the 
commencement of this Management Agreement, such 
personnel shall carry with them all the seniority, 
vacation and pension rights accumulated during their 
employment by the prior Manager and shall be 
carried on the books of Manager as of the service 
starting date of the prior Manager." 

Mr. Joel Robinson of RPD states that Section 7.1 of the 
proposed management agreement will be fully enforced by 
RPD. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

23 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 



5. Item 6, File 99-0857 in this report to the Finance and 
Labor Committee is a companion ordinance to increase the 
parking rates at the Kezar Parking Lot. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

24 



i 



Exhibit A 



VT7AP ViT ng jlG LOT BID RESULTS 

December 17, 1998 



HRC cvppfooM 



^pgffi lig p 


1. US Parting, Inc. 


1 317,021.00 


'No.VelS 


2. City Parking Co. 


18.700.00 


Yes 


3. On-line Parking 


19,551.00 


No 


4. Danas Pariring_ 


19,710.61 


Yes 


5. Parian* Concerns. Inc. 


22,498.00 


No 


6. ' Pacific Park Management 


22.747.04 


Yes 


7. ABC ParidngrTHOR 


23,888.00 


Yes 


8. Chu Fun* and Danid Srid 


24.288.00 


Yes 



25 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

Item 6 - File 99-0857 



Department: 
Item: 



Description: 



Comments: 



Recreation and Park Department (RPD) 

Ordinance amending the San Francisco Park Code by adding 
Section 12.08 revising parking rates at the Kezar Parking 
Lot located at Stanyan and Frederick Streets (see Comment 
No. 4). 

The proposed ordinance would increase parking rates at the 
Kezar Parking Lot, a City-owned property located at Stanyan 
and Frederick Streets which accommodates approximately 
341 vehicles. This subject lot is approximately 107,440 
square feet. 

According to Mr. Chris Mack of the Recreation and Park 
Department (RPD), the current parking rates at the subject 
parking lot have been in effect since September 1991, almost 
8 years. The proposed ordinance would increase parking 
rates between 0% and 140% as shown in Attachment I 
provided by RPD. 

1. According to Mr. Mack, RPD based the proposed parking 
rate increases on the parking rates charged at the only 
parking lot that RPD considers comparable to the subject 
parking lot. Attachment II, provided by Mr. Mack, lists the 
parking rates at these two lots. Mr. Mack further explains 
that RPD is proposing these rate increases in conjunction 
with a proposed new management agreement for the 
operation of the subject parking lot (see Item 1 File 99-0803 
of this report to the Finance & Labor Committee). 

2. Mr. Mack reports that the proposed hourly rate for 2-3 
hours of parking is incorrectly listed on the proposed 
ordinance as $4.50 instead of $3.00 and that the hourly rate 
for 3-4 hours of parking was inadvertently not included in 
the proposed ordinance. Accordingly, line 18 of the proposed 
ordinance should be amended to read, "2-3 hours $3.00" 
instead of $4.50 and a new line should be inserted after line 
18 that reads, "3-4 hours $4.50". 

3. According to Mr. Mack, the total estimated annual 
parking revenues to be realized by the City from the existing 
parking rates under the proposed new management 
agreement are $240,000 (see Item 5, File 99-0803 of this 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



26 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

report to the Finance and Labor Committee). Mr. Mack 
explains that approval of the revised parking rates under the 
subject proposed ordinance would result in estimated 
increased annual parking revenues of $252,288, or a 105% 
increase, thereby resulting in total estimated annual parking 
revenues of $492,288. 

4. According to Ms. Miriam Morely of the City Attorney's 
Office, the current parking fees charged at the Kezar Parking 
Lot are not included in Administrative Code because, prior to 
the 1996 Charter, Board of Supervisors approval was not 
required for parking fees established by the Recreation and 
Park Department. Ms. Morely clarifies that the current 
Kezar Parking Lot parking fees were established before 1996 
and that the proposed ordinance would amend the Park Code 
by adding a new section containing the proposed parking fees 
for the subject parking lot. 

Recommendations: 1. In accordance with Comment No. 2 above, amend line 18 
of the proposed ordinance to read, "2-3 hours $3.00" instead 
of $4.50, and insert a new line after line 18 that reads, "3-4 
hours $4.50". 

2. Approval of the proposed ordinance, as amended, is a 
policy decision for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

27 



MflY-13-1999 16:33 



SF REC PARK 



415 831 2099 P. 02/03 

Attachment I. 



Kezar Current and Proposed Rate w/Increases 





Category 


Current 
Rate 


Proposed 
Rate 


Increase 
In Rate 


Increase of 

Proposed Rates 

Over Current Rates 


0-1 hour 


S 1.00 


S 1.00 


5 0.00 


0% 


1 -2 hours 


$ 1.75 


S 2.00 


$ 0.25 


14% 


2-3 hours 


$ 2.75 


$ 3.00 


5 0.25 


09% 


3-4 hours 


S 4.00 


$ 4.50 


$ 0.50 


12% 


4-5 hours 


S 4.50 


S 6.00 


$ 1.50 


33% 


5- 12 hours 


$ 5.00 


S 8.00 


$ 3.00 


60% 


Overnight 


$ 5.00 


S 12.00 


$ 7.00 


140% 


Special Event 


$ 3.00 


$ 5.00 


$ 2.00 


67% 


Monthly Residential 


$ 55.00 


S 85.00 


$30.00 


54% 


Monthly Commercial 
5 days/week 


5100.00 


$125.00 


$25.00 


25% 


Monthly Commercial 
7 days/week 


$125.00 


$135.00 


$10.00 


8% 


Monthly 
Senior/Disabled 


S 15.00 


$ 35.00 


$20.00 


133% 


Lost Ticket Fee 


1 $ 3.00 


$ 3.00 


$ 0.00 


0% 


Validated Ticket Books 


S 75.00 


I $75.00 


1 $ 0.00 


0% 



G:\PROPERTY\Kaar Puking Lat\Cuiraa ind Proposed Rate Incre»iri 05-U-99.OOC 



28 



KEZAR PARKING RATE COMPARISON 



Attachment II 



APPENDIX 



Comparison of Hourly Rates 



B 

9 

1 
S 
<— 

6 

L. 
V 

M 

E 

a 
Z 


u 
« 

■ 

■ 

■ 

E 

3 

u 


i 

■ 
■ 

o 
a. 

E 

£ 


■ 

- a 

i s 

£ o 

^ i 

3 U 


■ "2 
" 2 

E «. B. 
u C p 

■ ■ E 

— - — 

2 E 3 2 

J O 4. U 












Otol 


S1.00 


$1.00 


$2.00 


0% 


1 to 2 


$1.75 


$2.00 


$4.00 


14.30% 


2 to 3 


$2.75 


$3.00 


$6.00 


9.10% 


3 to 4 


$4.00 


$4 50 


$8 00 


12.50*/. 


4 to 5 


$4.50 


$6.00 


$10.00 


33.30% 


5to6 


$5.00 


$8.00 


$12.00 


60.00% 


6to7 


$5.00 


$8.00 


$16.00 


60.00% 


7to8 


$5.00 


$8.00 


$16.00 


60.00 1 i 


8to9 


$500 


£8 00 


$16.00 


60.00% 


9to 10 


$5.00 


$8.00 


$16.00 


60.00% 


lOtoll 


$5.00 


$8.00 


$16.00 


'/.■■«-. 


11 tol2 


$5.00 


$8.00 


$1600 


60.00% 


Over Night 


$5.00 


$1200 


$1600 


140.00% 


(24 Hours) 











Monthly Raxes 



Residential Ter 
Month (Within 3 
Blocks of the Lot.) 



$55.00 



$85.00 



Limrted-i 



54.55* 



•S7.0Q/Mor.th, 5 pm to 8 am rain, 
no limit on Weekends & Holidays. 
Regular rate 8 am to 5pm 



Commercial Per 

Month (Outside 2 
Blocks of the Lot). 










5 days/week usage 


s 100.00 


$125.00 


N'A 


25% 


7 days/week usage 


$125.00 


$135.00 


N A 


8 s ,. 


Senior/Disabled 


$15.00 


$35.00 


Free* 


133% 



•24 Hrs/Day, 
365 days a Year. 
Only for Disibied. 



Other Kates 



1 hr Validation 
Stickers 


$75.00 


$75 00 


N'A 


0% 


Special Event 


$3.00 


S5 00 


N/A 


67% 



Mote: 



UC is a covered garage. Kezar is an uncovered lot 



-;--_ : :: 



29 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

Item 7 - File 99-0870 



Department: 
Item: 



Amount: 
Source of Funds: 

Description: 



Public Utilities Commission (PUC) 

Supplemental appropriation ordinance in the amount of 
$1,020,700 from unappropriated fund balances in the 
Water Fund, Hetch Hetchy Fund, and Clean Water Fund 
to pay for the establishment and implementation of a 
Year 2000 (Y2K) embedded system compliance program 
for the PUC, providing for retroactivity. 

$1,020,700 

$ 606,006 Water Fund balance 

236,968 Hetch Hetchy Fund balance 

177.726 Clean Water Fund balance 

$1,020,700 Total 

The proposed ordinance would appropriate 
unappropriated fund balances in the Water Fund, Hetch 
Hetchy Fund, and Clean Water Fund in the amount of 
$1,020,700 to pay for the establishment and 
implementation of the Public Utilities Year 2000 (Y2K) 
Embedded System Compliance Program. According to 
Ms. Carolyn Olsen of the PUC, the PUC's utility services 
have a variety of embedded computerized systems that 
use time sensitive integrated electronic chips to monitor 
and control the equipment. The Y2K Embedded System 
Compliance Program is designed to identify and address 
any problems that could lead to system malfunction and 
failure in the PUC's water transmission, treatment and 
distribution, power generation and transmission, and 
wastewater collection and treatment svstems. 



According to Ms. Olsen, the initial phase of the Y2K 
Embedded System Compliance Program was funded 
through a $460,000 reallocation of funds from the PUC's 
FY 1998-99 capital budget. The PUC is now requesting a 
total of $1,020,700 in order to (1) replenish the $460,000 
previously expended from the PUC's FY 1998-99 capital 
budget and (2) spend an additional $560,700 to continue 
the Y2K program through its completion in December of 
2000. Ms. Olsen reports that the $460,000 was reallocated 
from the following three capital projects: (1) $100,000 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



30 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

from Hetch Hetchy Power System's Control and Data 
Acquisition (SCADA) project; (2) $300,000 from the Water 
Supply and Treatment Division's Rehabilitation and 
Upgrade of the Water Treatment Facilities and (3) 
$60,000 from the City Distribution System's Standby 
Generators. Ms. Olsen advises that $317,591 of the 
$460,000 was expended on the Y2K Embedded System 
Compliance Program prior to appropriation approval by 
the Board of Supervisors because the PUC determined 
that the Y2K project was vital to the PUC's operations 
and it would not be completed prior to January 1, 2000, if 
work were postponed until the subject supplemental 
appropriation was approved. 

Budget: The PUC reports that the total requested supplemental 

appropriation of $1,020,700 for the Y2K Embedded 
System Compliance Program includes staff and 
remediation costs of $580,019 and consultant fees of 
$440,681. The Attachment, provided by the PUC, contains 
a summary budget for the total estimated project cost of 
$1,020,700. The Budget Analyst has reviewed additional 
budget details provided by the PL>C to support this 
request. 

Comments: 1. Ms. Olsen advises that the consultant selected for the 

Y2K Embedded System Compliance Program is 
OCC/SOHA, a joint venture. Ms. Olsen reports that 
OCC/SOHA was selected from an "as needed" engineering 
pool that PUC currently maintains with ten engineering 
services firms. According to Ms. Olsen, the PUC uses a 
competitive Request for Proposal process to select the "as 
needed" contractors. The PUC decided to use the existing 
"as needed" contractors for this Y2K project because Ms. 
Olsen reports that the PL T C determined that a new RFP 
process would take approximately six months to complete, 
which would not allow sufficient time to undertake the 
Y2K project prior to January 1, 2000. Ms. Olsen states 
that the reason for selecting OCC/SOHA over the other 
nine firms included in the PL'C "as needed" pool of 
engineering services firms is due to their expertise and 
availability. 

2. The Board of Supervisors previously appropriated 
$500,000 in both FY" 1997-1998 and 1998-1999, for a total 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

31 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 



of $1,000,000, for Year 2000 compliance expenditures. 
These appropriations included expenditures for the City's 
payroll system ($247,000), the Health Services System 
($186,000), the Mayor's Emergency Telephone System 
($65,000), the Court Management System ($126,000), a 
contract to assess the City's exposure to non-compliant 
micro-chips in vehicles, elevators, medical equipment and 
other devices ($25,000) and various smaller projects 
($351,000). In January of 1999, the Board of Supervisors 
appropriated funds to create a Year 2000 team to provide 
technical assistance, monitoring, testing and 
implementation of Year 2000 compliance requirements 
($979,000). Finally, in April 1999 the Board of 
Supervisors appropriated funds for the replacement of the 
Department of Building Inspection's network equipment, 
upgrading of software and hardware, and integration of 
the Department's Permit Tracking and Issuance System 
($1,490,724) and to the Department of City Planning for 
new Year 2000 compliant equipment, software and 
upgrades ($491,530). Therefore, to date, a total of 
$3,961,254 has been appropriated for Year 2000 
compliance expenditures. 

The table below summarizes total Year 2000 compliance 
expenditures to date: 

Fiscal Year 1997-1998 and 1998-1999 

Expenditures $1,000,000 

January 1999 Supplemental Appropriation 

(File 98-2130) 979,000 

April 1999 Supplemental Appropriation 

(File 99-0667) 1,490,724 

April 1999 Supplemental Appropriation 

(File 99-0668) 491.530 

Total to date $3,961,254 

With the approval of the subject requested supplemental 
appropriation of $1,020,700, expenditures for Year 2000 
compliance would total $4,981,954. 

3. According to Mr. Matthew Hymel of the Mayor's 
Budget Office, any additional requests for Year 2000 
compliance expenditures for other City departments will 
be included in the City's Fiscal Year 1999-2000 budget. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



32 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

Such expenditures will be analyzed by the Budget 
Analyst during the FY 1999-2000 budget review. 

Recommendation: Approval of the proposed ordinance is a policy matter for 

the Board of Supervisors because the PUC has already 
expended approximately $317,591 of previously allocated 
funds to other capital improvement projects for this Y2K 
project without first obtaining approval from the Board of 
Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

33 



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34 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 



Item 8 - File 99-0934 

Department: 

Item: 



Amount: 
Source of Funds: 
Description: 



Budget: 



Comments: 



Department of Children, Youth and Families 

Supplemental appropriation ordinance in the amount of 
$150,000 of General Fund monies to fund the New 
Conservatory Theatre Center to provide arts and health 
education programs for youth. 

$150,000 

General Fund Reserve 

The New Conservatory Theatre Center is a non-profit 
professional theatre arts school for youth ages 4-19 and 
performing arts complex located at 25 Van Ness Avenue. 
The proposed ordinance would appropriate $150,000 of 
General Fund monies to the New Conservatory Theatre 
Center to fund personnel, program, and rental costs. 
Attachment I provided by the New Conservatory Theatre 
Center provides descriptions of the programs which would 
receive funding under this request. 

Attachment II, provided by the New Conservatory 
Theatre Center, contains budget details for this $150,000 
request. Attachment III provided by the Center contains 
the Center's original overall FY 1998-99 budget and 
funding sources, which reflects a net income of $18,590. 

1. According to Mr. George Vanberg-Wolff of New 
Conservatory Theatre Center, the Center's fiscal year 
runs from September 1, 1998 to August 30, 1999. Mr. 
Yanberg- Wolff has provided Attachment IY of this report 
which represents that, as of February 28, 1999 (the first 
six months of the Center's FY 1998-99), the Center had a 
shortfall of $83,416. Therefore, according to Mr. Yanberg- 
Wolff, the New Conservator}' Theatre Center is projected 
to have a FY 1998-99 operating shortfall of approximately 
$166,832 instead of an original projected net income of 
$18,590. 

2. According to Mr. Yanberg-Wolff, the subject 
supplemental appropriation request would be used to pay 
for $150,000 of the latest shortfall of $166,832, as 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

35 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

projected by the Center. Mr. Vanberg- Wolff advises that 
the balance of $16,832 ($166,832 less $150,000) would be 
made up by grants from the private sector. According to 
Mr. Yanberg-Wolff, the New Conservatory Theatre 
Center's deficit in FY 1998-99 is due to decreased private 
funding and increasing costs. 

3. Mr. Yanberg-Wolff reports that the New Conservatory 
Theatre Center received $50,000 from the City's Grants 
for the Arts Program for FY* 1998-99. According to Mr. 
Yanberg-Wolff, such funds support non-youth related 
programs at the New Conservatory Theatre Center and 
the subject requested $150,000 would fund youth-related 
programming which the Grants for the Arts funds do not 
support. 

Recommendation: Approval of the proposed ordinance is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

36 



Attachment I 
Page 1 of 2 



THEATRE CENTER OVERVIEW - YOUTH PROGRAMS 

HIV Tourinp Division 

school-aged audioes), have proven to be an effective^,*™ ^wnToh tS IS 

young people each season, including children and youth from the San SS£ 
School District (SFUSD) and Local high Risk Youth Facilities Since u£f£ K? 
Conservatory Theatre Center HIV Tounng Division has been an appro ed and vel 
mthzed program of the SFUSD School Health Programs. However due To itc ml HIV 

Z T ^nc" 8 , ' rendS m ,hC United S,ates ' " has become mcreasmol diffi Xt 
underwrite AIDS education efforts pnmanly wtth foundation and corporate conrtbutions 
Although we have provided these programs to City and Countv of San Fr^cise Tfor n 
years, we must now ask Cry and County of San Francisco to co nibote „ ord r ,o e'° D 
h programs m existence. City and Counry of San Francisco funding w II eusu e to 
these programs continue to augment the current Healthy Kid's curriculum for San 
Francisco's public school children and youth. 

Elementar v/Middle School Matinee Series 
The New Conservatory Children's Theatre Company Elementary/Middle School Matinee 
Series produces subsidized theatre for public school audiences. Upwards of 1T0OO 
elementary school children and men teachers in San Francisco enjoy SdSift- are 

s hool cSuLTa d n T7 inS ' Th ' S WSh qUMty bl " ' 0W —^ expense s*^ 
scnool curriculum and introduces young audiences to the world of theatre Here a«ain 

he New Conservatory Theatre Center must ask City and Countv of San Francisco to 

contribute to the costs associated with such programming or risk losine ,h s pro" ant 

vears rL Tr ylde u t0 "* and C ° Unt >' ° f Sa " Frandsc ° - h0 °' a"d,n P cesTl5 
Ser, ha^wm to" £T "" ^ "'" *" "^ ^ ^ 

After-School Satellite Drama Programs 

Sid? ?; SCh ,°t?, atemte ° rama Pr ° gramS tar § etin 8 San F ™ cisc ° Elementary and 
Middle School children are filing the void left by severely reduced or eliminated ^ts 

ESSX^ SCh0 ° IS - t C0I | dUCted b> ' ^ C °™^ The - £ C " SSn. 
after! hi; Pr0gr r S mke PhCe throu § hout the City, and facilitate much needed 

San Fr nc 1Vltl6S f nSUre Pr ° dUCtiVe and P ° Sltive °PP^nities for the children of 
o ft^r W ° rklng Par£ntS - Gt >' *»<""« -11 ensure the continued existence 



v-supreq.wpd (January 22, i 9 o 9J p a o e 4 Q f 5 



17 



Attachment I 
rage 2 of 2 

THEATRE CENTER OVERVIEW — YOUTH PROGRAMS 

Youth Scholarship & Vocational Training/Employment Procram for Citv Youth 

Our Youth Scholarship and Vocational Training/Employment Programs are designed to 
provide young people with unique life skill learning experiences as students and as paid 
interns. The Youth Scholarship Program provides low-income kids ages 6-18 with 
financial aid enabling them to attend after-school and weekend arts training programs. 
The New Conservatory Theatre Center school-year and summer programs serve 
approximately 400 youth annually. The Vocational Training/Employment Programs 
teenage students "leam while they earn" minimum wage in areas that support the New 
Conservatory Theatre Center Training and Production Programs. 10 Youth are employed 
annually. City funding will also provide support for the ongoing New Conservatory 
Theatre Center youth arts training scholarships and employment programs. 



v-supreq.wpd [January 22, 1999] Page 5 Of 5 



Attachment II 



City & County of San Pranciseo 
I99?-99 Municipal Budget Line Item Request 
Mew Conservatory Theatre Center $150,000 Supplemental Lihe Item Budget Request 



Personnel: 



Salaries: 



Executive Director 
Conservatory Director 
Education Coordinator 
Business Manager 
Actors 

Youth Interns 
HIV Educator 
Stage Manager 
Stage Director 
Teachers 

Technicians/Stage Crew 
Designers 



15% of Salary 
25% of Salary 
25% of Salary 
10% of Salary 



Subtotal 



$8,445 
6,500 
4,500 
2,000 
5,750 
6,000 
3,750 
2,000 
1,500 
8,250 
2,000 
1,500 

52,195 



Payroll Taxes 
Health Insurance 
Workers' Comp Insurance 



7,829 
2,610 
1,566 



Total Salaries/Benefits 



64,200 



Expenses: 






Facility Rent 

Production 

Touring Vehicles 

Printing/Promotion 

Royalties 

Insurance 

Postage 

Telephone 

Scholarships 



(Sets, lights, costumes, etc) 



Total Expenses 
GRAND TOTAL 



40,000 

12,000 
5,000 

10,000 
1,000 
1,300 
2,500 
3,000 

11,000 

85.800 
$150,000 



39 



THE WEW CONSERVATORY THEATRE CEMTER 



DESCRIPTION 



BUDGET 
98-99 



Attachment III 
?a°e 1 ot 2 



INCOME: 

TUITION - REGULAR 
TUITION -SUMMER 
BOX OFFICE-SINGLE 
BOX OFFICE-SUBSCRIBERS 
CONCESSIONS 
UNDER ONE ROOF 
ROYALTIES 

CONTRIBUTIONS-INDIVIDUALS 
CONTRIBUTIONS-FOUNDATIONS 
CONTRIBUTIONS-CORPORATIONS 
CONTRIBUTIONS-CLUBS & ASSOC. 
CONTRIBUTIONS-FEDERAL 
CONTRIBUTIONS-STATE 
CONTRIBUTIONS-CITY 
SCHOLARSHIPS/INTERNS 
SPECIAL EVENTS 
BOARD DONATIONS 
FACILITY RENTAL-MONTHLY 
FACILITY RENTAL-PRODUCTIONS 
INTEREST 
TOTAL INCOME 

EXPENSES: 

SALARY-EXECUTIVE DIRECTOR 
SALARY-EDUCATIONAL PROG COORD 
SALARY-TEACHERS 
SALARY-CONSERVATORY DIRECTOR 
SALARY-RESIDENT DIRECTOR 
SALARY-AUDIENCE DEVELOPMENT 
SALARY-TECHNICAL DIRECTOR 
SALARY-BOX OFFICE MANAGER 
SALARY-BOX OFFICE ASSISTANT(S) 
SALARY-HOUSE MANAGER 
SALARY-TECHNICAL ASSISTANT 
SALARY-JANITORIAL 
SALARY- ACTORS 
SALARY-TOUR TECHNICIANS 
SALARY-AIDS EDUCATOR 
SALARY-STAGE MANAGERS 
SALARY-STAGE CREWS 
SALARY-TOUR DIRECTOR 
TOTAL SALARIES 



$ 45, 


000 


35, 


000 




000 


25, 


oco 


18, 


000 


4, 


000 


2, 


500 


25, 


000 


135, 


000 


"70, 


000 




000 


12, 


500 


3, 


500 


54, 


000 


10, 


000 


7, 


000 


4, 


500 


40 


000 


55, 


000 


2 


500 


$735 


5C ] 


S 56 


000 


18 


000 


15 


000 


26 


000 


l -7 


000 


25 


000 


29 


000 


22 


500 




000 


10 


,000 


12 


,500 


3 


,000 


31 


,500 


3 


,000 


3 


,500 


7 


,500 


3 


,000 


5 


'- 



300,000 



40 



THE NEW CONSERVATORY THEATRE CENTER 

DESCRIPTION 

PAYROLL TAXES 
INSURANCE-HEALTH 
INSURANCE-W/C 
TOTAL SALARIES & BENEFITS 

FRISCO COMMUNICATIONS/MARKETING 
PUBLICIST 
Dl RECTOR (S) 
COSTUME DESIGNER(S) 
SCENIC DESIGNER(S) 
SOUND DESIGNER(S) 
LIGHTING DESIGNER(S) 
CATERING 
LOAD-IN CREWS 
PLAYWRIGHTS/ROYALTIES 
BUSINESS MANAGER 
AUDIT 
TOTAL CONSULTANTS 

RENT 

TOUR VEHICLE RENTAL 

STAFF DEVELOPMENT 

PRODUCTION 

SUPPLIES 

GALLERY INSTALLATIONS 

PRINTING & PROMOTION 

TELEPHONE 

TRAVEL 

MEMBERSHIP/PUBLICATIONS 

PAYROLL PROCESSING 

POSTAGE 

INSURANCE 

CONCESSIONS 

UNDER ON ROOF 

FACILITY-MAINTENANCE 

BANK CHARGES 

DEPRECIATION 

DEVELOPMENT FUND 

SCHOLARSHIPS/INTERNS 

TOTAL G&A EXPENSE 

TOTAL EXPENSE 

NET INCOME (LOSS) 



Attachment III 
Page 2 of 2 



BUDGET 
98-99 



35, 


000 


7, 


155 


2, 


500 


345, 


655 


6, 


000 


6, 


000 


5, 


000 


2, 


600 


3, 


000 




100 


2, 


000 


1, 


500 


2, 


000 


8, 


000 


19 


000 


2, 


800 


55 


000 


157 


989 


A 


000 


2 


000 


35 


000 


15 


000 




500 


35 


000 


6 


500 


6 


000 




600 




000 


8 


500 


6 


316 


7 


000 


1 


500 


1 


500 


3 


500 


6 


600 


3 


750 


10 


000 


313 


255 


716 


910 


$18 


590 



41 



NEW CONSERVATORY THEATRE CENTER 

Income Statement-Consolidated 

February 1999 



Attachment 
Page 1 of 2 



Ordinary Income/Expense 
Income 
Tuition 

Tuition -Regular 
Tuition -Satellite 

Total Tuition 

Special Events 
Gross Box Office 
Box Office-Single 
Box Office-Subscriber 

Total Gross Box Office 

Under One Roof-Income 
Program Ads 
Concessions-Income 
Royalties -Income 
Contributions 
Individuals 
Foundations 
Corporations 
Associations 
State 
City 

Board Donations 
Scholarship Income 

Total Contributions 

Facility Rentals 
Monthly 
Night Use 

Total Facility Rentals 

Total Income 

Expense 
Salaries 

Executive Director 
Conservatory Director 

Teachers 
Resident Director 
Educational Program Director 

Audience Development 
Technical Director 
Box Office Manager 

Box Office Assistant(s) 
House Manager 
Janitor 
Actors 

AIDS Educator 

Stage Manager 

Stage Crew 

Director 

Lighting Technician 

Costume Designer 

Total Salaries 

Payroll Taxes 
Consultants 

Publicist 

Scenic/Sound Design 

Catering 

Graphics/Marketing 

Photograher 

Business Manager 

Auditor 



Feb 99 




Sep -98 - Feb -99 


6,696 




30.134 


1 033 


7.729 


5.262 




35.396 







11.547 


22.304 




102.735 





2 304 


4.600 


2 


107.335 







660 







1.030 




2.553 


10.962 




64 


209 


80 




3475 







15.000 


1.000 




6.000 


150 




1.432 


5.241 




5.241 







4000 







750 







6.440 



1.900 




1.900 



41.021 



42 338 



16.675 
28.197 



44.673 



254 349 



6462 


28.000 


3.000 


13.000 


1.877 


7,165 


1.962 


8.500 


2.077 


6654 


2.785 


11 919 


3.346 


14.500 


2.596 


11.250 


1 632 


7.528 


1.080 


3,786 


720 


2.920 


4025 


13.220 


275 


1 464 


400 


3.288 





717 


566 


3,341 





577 





1.679 


32.802 


141.508 


3.043 


12232 


460 


3.110 


300 


1.230 


235 


647 





2.933 


462 


2.181 


2.228 


8.382 


2.800 


2.800 



42 



NEW CONSERVATORY THEATRE CENTER 

Income Statement-Consolidated 

February 1999 



Attachment IV 
Page 2 of 2 



Total Consultants 

Rent 

Tour Vehicle 

Staff Development 

Production 

Royalties 

Office Supplies 

Printing and Reproduction 

Postage and Delivery 

Telephone 

Travel 

Dues and Subscriptions 

Payroll Processing 

Insurance 

Vehicle Insurance 

Liability Insurance 

Health 

Workers' Comp 

Total Insurance 

Concessions 
Under One Roof 
Facility Maintenace 
Bank Service Charges 
Depreciation Expense 
Development Fund 
Scholarship 

Total Expense 

Net Ordinary Income 

Other Income/Expense 
Other Income 

Interest Income 
Other Income 

Total Other Income 

Other Expense 
Other Expenses 
Returned Box Office 

Total Other Expense 
Net Other Income 
Net Income 



Feb -99 


Sep*98 


- Feb "99 


6,484 




21,284 


13.400 




77,972 


288 




1.537 


35 




235 


926 




14,121 


1,613 




8,279 


143 




1,551 


3,138 




17,377 


785 




3,485 


685 




3,991 


658 




7,114 


154 




822 


417 




1,237 


104 




626 


336 




3,535 


871 




4,437 


575 




575 


1,886 




9,173 


706 




5,483 







216 







200 


33 




5,853 


550 




3,300 







144 







1,524 


67,748 




338.636 



(26,726) 



(84,288) 



37 



841 
96 


37 





936 

64 






64 


37 


872 


(26.690) 


(83.416) 



A3 



Memo to Finance Committee 

May 26, 1999 Finance Committee Meeting 

Item 9 - File 99-0872 

Department: Police (SFPD) 

Item: Supplemental Appropriation from the General 

Fund Reserve to provide additional funds for a) Workers' 
Compensation, b) installation of a "Bullet Trap" facility 
for the Police Crime Laboratory and c) funds for the 
''Peaceful Streets Program". 

Amount: $889,000 

Source of Funds: General Fund Reserve 

Description: A summary budget for the SFPD's proposed 

Supplemental Appropriation is shown in the table below: 

Services of Other Departments - Workers' Compensation $ 519,000 
Project Budget ("Bullet Trap" - Crime Lab; Lead Abatement 

at the former Crime Lab in the Hall of Justice) 350,000 

Professional Sendees ("Peaceful Streets Program") 20.000 

Total $ 889.000 

Workers' Compensation (S519.000) : On May 3, 1999, 
the Controller issued his Nine-Month Budget Status 
Report. This report highlighted General Fund Workers' 
Compensation costs as an area of budgetary concern. The 
Controller's projection showed that actual Workers' 
Compensation spending was estimated to exceed 
budgeted expenditures by $4.9 million for several General 
Fund and General Fund subsidized Departments. 
However, according to the Controller, all departments 
with the exception of the Police Department were 
projected by the Controller to have budget savings to 
offset such overspending for Workers' Compensation. This 
request is to fund the SPFD's projected Workers' 
Compensation deficit of $519,000. An analysis of the 
projected shortfall is as follows: 

FY 1998-99 SFPD Workers' Compensation Budget $5,463,000 

FY 1998-99 Actual Expenditures through 9 months 4,825,000 

Projected 12 Month Expenditures 6,430.000 

Projected Expenditures less Budget 967,000 

Less Airport Police Costs (448.000) 

Projected Deficit $519,000 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

44 



Memo to Finance Committee 

May 26, 1999 Finance Committee Meeting 



In June, 1998, during the Finance Committee's FY 1998- 
99 Annual Budget Review, the Budget Analyst reported 
that appropriations for Workers' Compensation in the 
Mayor's Recommended FY 1998-99 Budget appeared to be 
adequately funded, in relation to projected actual 
expenditures through the first nine months of FY 1997- 
98. However, actual spending for FY 1997-98 turned out 
to be considerably higher during the last three months of 
the 1997-98 Fiscal Year, and higher spending rates have 
continued during Fiscal Year 1998-99. 

"Bullet Trap" - Crime Lab: Lead Abatement at the former 
Crime Lab in the Hall of Justice ($350.000) : 
The SFPD is in the process of completing the conversion 
of the Department's new Crime Lab at Building 606 in the 
Hunters Point Naval Shipyard. The final component is 
scheduled to be the installation of a bullet recovery tank 
otherwise known as a "Bullet Trap". This equipment is 
used to safely test firearms for forensic purposes. Funds 
for the installation of the Bullet Trap in the amount of 
$300,000 are required so that the Bullet Trap can be 
placed in an enclosed room with a special ventilation 
system. In addition, $50,000 is required for Lead 
Abatement work at the former Crime Lab in the Hall of 
Justice. 

Attachment 1 to this report provides the Department of 
Public Works. Bureau of Architecture's $300,000 budget 
for the construction, to be done by existing DPW staff, of 
an enclosed room with a special ventilation system at the 
Building 606 Crime Lab. Attachment 2 details the SFPD's 
estimated cost of $40,000. or $10,000 less than the 
requested amount of $50,000, for Lead Abatement work at 
the former Crime Lab in the Hall of Justice, based on 
information from the Department of Public Health- 
Environmental Health Program. The work would be 
performed by either DPW employees or existing DPW 
hazardous waste cleanup contractors. The former Crime 
Lab space used for the bullet recovery tank will be 
vacated as soon as the new Bullet Trap is ready at the 
new Crime Lab. Since this space, located in the basement 
of the Hall of Justice will be used for other purposes, lead 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

45 



Memo to Finance Committee 

May 26, 1999 Finance Committee Meeting 

contamination resulting from its use as a bullet recovery 
tank must be removed in accordance with Occupational 
Health and Safety (OSHA) and DPH regulations. 

Peaceful Streets Program ($20.000) : Peaceful Streets is a 
San Francisco Non-Profit Corporation that conducts gun 
awareness and education programs in a) San Francisco 
public schools, b) Recreation and Park youth programs 
and, c) Boys and Girls Clubs in San Francisco. The 
program is designed to inform children of the hazards of 
guns and teach them how to avoid contact with guns. 
Peaceful Streets also accepts tax deductible donations of 
guns for its "Guns to Art" program, where donated guns 
are melted down and made into art. 

Peaceful Streets proposes to conduct approximately 290 
gun awareness and education classes at a cost of $69 per 
class, or a total of $20,000. The $69 unit price consists of 
teacher salaries ($39) materials and supplies ($9); 
supervision ($12.50) and benefits and taxes ($8.50). Each 
class takes approximately 3.5 hours of preparation, 
supervision and class time, or an estimated total of 1,015 
hours. Therefore, the average hourly rate for this program 
is $19.70 ($20,000 divided 1,015 hours). 

According to Mr. John Ricker, Executive Director of 
Peaceful Streets, Peaceful Streets is the only organization 
presently providing this service in California. Therefore, 
the proposed contractor was selected on a sole source 
basis. 

Comment: The Controller's latest expenditure projections for the 

SFPD estimates a surplus in salaries and fringe benefits 
of $296,687 based on spending through the pay period 
ending on April 16, 1997. However, this projected surplus 
is expected to decline due to the anticipated high cost of 
special events subsequent to April 16, 1997 such as Cinco 
de Mayo and the Bay to Breakers race. Therefore, the 
Budget Analyst does not recommend any reduction to this 
proposed supplemental appropriation based on the 
availability of funds indicated in the Controller's projected 
surplus as of April 16, 1997. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

46 



Memo to Finance Committee 

May 26, 1999 Finance Committee Meeting 

Recommendations: 1. Based on the revised estimate of $40,000 for the Lead 

Abatement work at the former Crime Lab in the Hall of 
Justice, instead of the original request of $50,000, amend 
the proposed ordinance to reduce the $350,000 request for 
the Bullet Trap Project Budget by $10,000 to $340,000. 
This will reduce the total $889,000 amount requested by 
$10,000 to $879,000. 

2. Approve the proposed ordinance as amended. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

47 



Attachment 1 
Page 1 of 2 



SFPD Crime Lab - Bullet Trap Room 
PROPOSED BUDGET 



PROPOSED BUDGET 



1. CONSTRUCTION, PURCHASE, & INSTALLATION 

Includes construction contract, construction contingency; and fixed equipment 

2. PROJECT RESERVE 

Project contingency for unforseen conditions. 

3. DPW PROJECT MANAGEMENT 

Management of the proiect scope, schedule and budget from inflation to post-construction; monitoring of project 
funds, revenue and expenditures; management of design and construction contracts; appropnations assistance, 
and reporting to Client. 

4. ADDITIONAL MANAGEMENT SERVICES 

Developing project scope, schedule and budget for initial appropnation. 



1.480 



5. CITY ADMINISTRATIVE SERVICES 0.0% 

Financial and legal counsel for construction contract support 

6. REGULATORY AGENCY APPROVALS 4,000 1.8% 

Planning Dept.. Building permit, and other fees; 

7 BASIC ARCHITECTURAL/ENGINEERING SERVICES 34,937 15.7% 

Architectural, structrual. mecnanical and electncal engineenng services for contract documents, and construction 
phase services. 

8. SUPPLEMENTAL A/E SERVICES 8,849 4.0% 

Additional architectural and engineenng services including site and utility assessments; existing conditions 
assessments and documentation, and post construction services 

9. CONSTRUCTION MANAGEMENT & RELATED SERVICES 20,133 9.1% 

Includes basic CM services as well as construction contract preparation; inspection for compliance with contract 
documents, schedule reviews and confirmation of proposal requests 

10. OWNER FURNISHED DATA, SURVEYS 0.0% 
Includes hazardous matenals surveys and reports, existing materials testing for structural integnty, site surveys 

for design. 

11. TOTAL PROJECT BUDGET 300,000 135.2% 

The figures listed above are budgetary assumptions for the purpose of appropnation. These items represent typical project costs based 
upon previous project expenence and are included for discussion and consideration. They are predictions of expenditures by category, 
actual costs will be managed jointly by the Client Department and the Department of Public Works. Questions regarding this budget 
should be directed to Edgar Lopez, Project Manager. DPW. @ 557-4675. 



Bureau of Architecture 



Page i 



48 



Attachment 1 
Page 2 or 2 



Detailed Budget 



Job No: 


TBD 


REVISED 


March 25. '99 






Project: 


SFPD Crime Lab - Bullet Trap Room 


BUDGET 


Building 606 




1 








(May '991 


Hunter's Point Shipyard J 




1 
















TOTAL PROJECT BUDGET 


300.000 






1 


1 1 1 












1. CONSTRUCTION. PURCHASE. & INSTALLATION 


221.760 










I i I 








1.0 CAPITAL IMPROVEMENTS 


221.760 








! ' ' 




1 




1.11 Principal Construction Contract 


221.760 


1 1 1 




|1.1.1 (Construction Contract Award Amount 


201 600 1 


1 III 




|1.1.2 (Construction Contract Contingency 


20.354 


1 1 


2. PROJECT RESERVE 





1 1 1 1 1 


1 2 . 1 .3 |Proiect Reserve 





1 1 1 1 1 


1 1 1 




weeks lempioyeei Ihrs.week Irate | Total IToial Hrs 


3. DPW PROJECT MANAGEMENT 


8.646 




1 1 


ss 




13.1.2 IProiect Management 


5.170 


18 


1 4 


85.7 


-: -70 


72 


13.1.3 I Planning and Control 


2 475 


12 


1 


4 


51 61 2.475 


48 










1 1 i 


4. ADDITIONAL MANAGEMENT SERVICES 


1.480 






1 


|4.1.3 |Proqramminq & Planning 


•,.480 


' 


11 201 74 


1.480 1 20 


I 










6. REGULATORY AGENCY APPROVALS 4.000 










16.1.1 IDBI Plan Check and Permit 4 000 


Cost included in construction cost I 


III! 1 


1 III 




7 BASIC ARCHITECTURAL/ENGINEERING SERVICES 34.937 


Weeks lernploveei hrs week Irate i Total 


Total Hrs 


7.1 Basic A/E Design Services 25 055 


1 1 i 




17.1.1 |Basic Architectural Design 7.106 


6i 11 1 6 1 74| 7.106 


96 




7.1.2 |Basic Structural Engineering Design 


7.106 


61 161 74| 7,106 


96 




7.1.3 |Basic Mechanical Engineering Design 


7.106 


61 161 74| 7.106 


'■-' 


|7.1.4 |Basic Electrical Engineering Desian 


4.737 


41 1 1 161 74| 4.737 | 54 


1 1 1 1 1 


1 26.055 1 


17.2 Basic A/E Construction Services 1 S82 


1 II 1 


17.2.1 (Basic Architectural Const. Administration 


3.553 


121 4| 741 2.553 1 48 


1 7 . 2 .2 |Basic Structural Engineering Const. Administration 


1.776 


61 "I 4| 741 1.776 | 24 


I7.2.3 |Basic Mechanical EnoineerinQ Const. Administration| 1.776 


61 4| 741 1.776 1 24 


|7.2.4 


Basic Electrical Engineering Const Administration | 1.776 


51 4| 74| 1 .776 | 24 




7.2.5 


Contingencv 


8.882 1 




I I 




8. SUPPLEMENTAL A/E SERVICES 8.849 


i : 


18.1.1 |Misc. /Other Additional A,E Services 


! 1 1 1 i 


18.1.2 | Facilitv Assessments Site and Utility Studies 


01 21 201 741 - 


1 8. 1 .3 (Investigate Exist. Cond./ Measured Drawinas 1 480 


" i 201 741 1.480 1 20 


J8.1.10 IDetailed Cost Estimates 5.000 


1 ILump sum (consultant teei : Z'jZ 


J8.1 .1 1 JExtended Services: 60 Davs After Subst. Compl. 2.369 


41 81 74J 2.369 1 32 


|8.1 .1 2 |Post-Construction Services Warranty Work 


81 741 


III 1 


8.849 I 


1 1 1 


1 1 1 


9. CONSTRUCTION MANAGEMENT & RELATED SERVICES 20.133 


1 




9.1.1 iMisc. /Other Construction Manaaement 1.480 


10 " 21 741 1 480 I : - 




9.1.2 IContract Preparation ' "t 


24 74| 1 .~76 I 24 


19.1.5 IConstruction InsDectior f, Mar.a;?^.;".- 14,212 


•2' 1i 161 74 "4 2" 2 1 '52 


19.1.6 IMatenals Testina and Inspection ".7761 '2 2! 74] 24 


19.1.7 ICertified Pavroll and Emolovment Goals Momtorma 1 388U - Z 1 1 74 888 i 12 


1 1 20.133 1 


I This project budget does NOT include furniture procurement nor installabon A 


10. OWNER FURNISHED DATA. SURVEYS OJj 


|l0.1.2 lHazardous Materials Assessment OlSoHs investigation, report, ana founcaticr recomedaq 


1 1 


11. TOTAL PROJECT BUDGET 300.000lj 1046 



Page 1 

U9 



Attachment 2 



Memorandum 



San Francisco Ponce Department 



To: Captain Alex Fagan 
Fiscal Division 

From: Martha Blake 

Laboratory Manager 



Date: Thursday, May 20, 1999 
Subj: The Gun Room Clean-Up 




YES NO 

.□ □ 

.□ □ 

.□ □ 



An estimated cost for cleaning the gun room is $12,000. As part of the total job, we need 
to have the vertical water bullet trap and support structure dismantled and removed. This 
part of the job is difficult to cost-out because there is lead-co ntaminate d water in the tank 
and the support is likely painted with a lead-base paint, making its removal more 
problematic. The Department of Public Works is studying the job as well as a sub- 
contractor (Safety Clean). New regulations affecting Department of Health certification 
of the contractors doing the work are also being reviewed. An estimate for all additional 
work needed to make the room ready for occupation is $28,000. bringing the total amount 
needed to: $40,000 

The contact person for this job is Steve Lowe, Department of Public Health, phone: 
252-3977. 






50 



Memo to Finance Committee 

May 26, 1999 Finance Committee Meeting 

Item 10 - File 99-0936 

Department: Human Resources Department (HRD) 
Police Department 

Item: The proposed ordinance would implement Amendment Number 3 

to the Memorandum of Understanding between the San Francisco 
Police Officers' Association and the City and County of San 
Francisco to amend salary provisions for represented classes and 
to authorize action to rectify prior retirement status for former 
Airport Police Officers, effective July 1, 1999. 

Description: The subject MOU with the San Francisco Police Officers 
Association (POA) was approved by the Board of Supervisors 
effective July 1, 1996. The term of the MOU is Fiscal Year 1996- 
97 through Fiscal Year 2000-2001, or five years. This MOU 
provided for salary increases for all Police Officers of 2.75 percent 
annually for Fiscal Years 1996-97, 1997-98 and 1998-99. The 
MOU also included language that the City and the POA agreed to 
"reopen" the MOU to negotiate salary provisions for Fiscal Years 
1999-2000 and 2000-2001. Lastly, Retirement Benefits were also 
subject to reopened negotiations at any time. 

This proposed amendment to the MOU with the POA would adopt 
the following recommended salary increases for all uniform POA 
members consisting of five classifications (Commander, Captain, 
Lieutenant, Sergeant and Police Officer) covering 2,359 
employees: 



Effective July 1, 1999 
Effective July 1, 2000 



5Vi percent increase. 
5% percent increase. 



The cumulative impact of the consecutive annual salary increases 
of 5/4 percent is a total increase in Police Officer salary levels of 
11.3 percent over two years. 

The Controller's cost estimate is shown in the Attachment to this 
report. The Controller estimates that the first year incremental 
cost of the proposed amendment to the MOU is $8,765,878 and 
the second year incremental cost is $9,248,001. The total 
cumulative cost above FY 1998-99 budgeted permanent uniform 
salaries and related fringe benefits is therefore $26,779,758. The 
Budget Analyst concurs with the Controller's estimate but notes 
that the impact on Police Overtime costs is not included (see 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



51 



Memo to Finance Committee 

May 26, 1999 Finance Committee Meeting 

below). By including Police Overtime costs at the budgeted 
overtime costs in FY 1998-99, the cumulative cost over the two 
years of FY 1999-2000 and FY 2000-2001 increases by $2,076,045 
from $26,779,758 to $28,855,803. 

Since the POA now represents both San Francisco Police Officers 
and the Police Officers assigned to the Bureau of Airport Police, 
the proposed salary increases will result in increased salary costs 
and increased fringe benefit costs for both the General Fund and 
the Airport Fund, as well as Work Order Funds. 

The cost of the two year Police Officer salary increase, including 
increased costs for Overtime salaries is shown below for the 
General Fund, Work Order Funds: 

Incremental Cost 

FY' 1999-2000 FY' 2000-2001 Cumulative Cost 

General Fund $8,555,670 $9,025,671 $26,137,011 

Work Order Funds 96,378 102,679 295,435 

Airport 793.243 836.871 2,423.357 

Totals $9,445,291 $9,965,221 $28,855,803 

As the Controller notes in the attached letter, his estimate is 
based on budgeted positions and salary amounts for FY 1998-99. 
The Controller adds that "To the extent that additional 
unformed police positions are approved during the FY' 1999-2000 
budget process, the City's costs under this amendment will 
increase". 

The proposed ordinance also states that the San Francisco 
Employees Retirement System (EFIS) is authorized to effect all 
necessary action to implement the adjusted corrected placement 
by the State Public Employees Retirement System (PERS) of 
covered members who were previously in Airport Police 
classifications to an improved retirement benefit plan. 

According to Ms. Clare Murphy, General Manager of the 
Employee's Retirement System (ERS) Airport Police currently 
can retire at the age of 50, and their annual retirement benefits 
would equal 1.426 percent of their final annual compensation 
times the number of years they were members of PERS. At age 
55 or over, such employees can receive 2.0 percent per year of 
their final annual compensation times the number of years they 
were members of PERS. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

52 



Memo to Finance Committee 

May 26, 1999 Finance Committee Meeting 

The improved PERS benefit plan would provide employees who 
retire at age 50 with an annual retirement benefit of 2 percent 
instead of 1.426 percent, of their final annual compensation 
times the number of years they were members of PERS. At age 
55 or over, the improved PERS benefit plan would enable such 
employees to receive the maximum benefit of 2.7 percent, 
instead of 2 percent per year of their final compensation times 
the number of years they were members of PERS 

According to Ms. Alice Villagomez, Deputy Director of Human 
Resources, Airport Police Officers, who are members of the 
PERS Public Safety retirement program (authorized by Charter 
Section A8. 506-2) have been mis-classified by PERS as members 
entitled to "two percent at age 55" instead of "two percent at age 
50" under the contract between the City and PERS. This 
provision of the proposed ordinance would instruct the ERS and 
the City Attorney to initiate a contract change with PERS, 
subject to future legislative approval by the Board of 
Supervisors, that would retroactively increase Airport Police 
Officer retirement benefits. The improvement to the Airport 
Police Officer retirement benefits would be consistent to 
improvements granted by a Charter Amendment in November, 
1998 for Police Officers who are Tier 2 members of the City's 
ERS (Police Officers hired after November, 1976). Under 
Charter Section A8. 506-2, such amendments to the City's 
contract with PERS cannot result in increased costs to the City 
than would be incurred if Airport Police Officers were members 
of the ERS. 

Prior to Board of Supervisors approval of any amendment to the 
PERS contract, PERS would provide the City with an actuarial 
report certifying the required rates of contribution for the 
improvement in retirement benefits for the Airport Police. This 
actuarial report will provide the City with the information 
needed to evaluate the increased cost, if any, from the 
retirement benefit improvement. 

Recommendation: Approval of the proposed ordinance is a policy matter for the 

Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

53 




'A CITY AND COUNTY OF SAN FRANCISCO 



ftitacnment 
Page 1 ot 2 
OFFICE OF THE CONTROLLER 



Edward Hamngion 
Controller 

Jo im W. Madden 
Chief .Assistant Controller 



May 21, 1999 



Ms. Gloria L. Young. Clerk of the Board 

Board of Supervisors 

City Hall, Room 244 

1 Dr. Carlton B. Goodlett Place 

San Francisco, CA 94 1 02 

RE: Amendment to the Memorandum of Understanding with the San Francisco 
Police Officer's .Association 
File No. 99-0936 

Dear Ms. Young: 

In accordance with Ordinance 92-94, I am subinrtting a cost analysis of an amendment to Memorandum of 
Understanding between the City and County of San Francisco and the San Francisco Police Officer's 
Association. The amendment' covers the period July 1, 1999 through June 30, 2001, and affects 
approximately 2,359 employees with a salary base of approximately $146 million. 

Based on our analysis, the amendment will result in incremental costs of approximately S8.8 milli on in FY 
1999-2000, and $92 million in FY 2000-2001. The amendment will result in a cost increase of 
approximately 6% above base salaries in each fiscal year. Please see Attachment A for specific cost 
estimates. 

Our estimate of costs is based on budgeted positions and salary amounts for FY 1998-99. To the extent 
that additional uniformed police positions are approved during the FY' 1999-2000 budget process, the 
City's costs under this amendment will increase. 

If you have any additional questions or concerns please contact John Madden at 554-7500. 



Sincerely, 

■ — -Edward M. Harrington 
Controller 



cc: Vicki Rambo, ERD 

Harvey Rose, Budget .Analyst 



Cny IUD • I Dr. Ctrttoe R. Goodktt Place - Rooos 516 • San Francisco CA 94102-469* 



FAX «lS-55*-746< 



54 



Attachment A 

San Francisco Police Officer's Associaton 
Estimated Costs 1999-2000 to 2000-2001 
Controller's Office 



Attachment 
Page 2 of 2 



Annual Incremental Costs/fSavinqsl 

Wage Increase 

55% on July 1.1999 
5.5% on July 1,2000 

Wage-Related Fringe Increases 



FY 1999-2000 FY 2000-2001 



S8.033.246 



732.532 



S8.475.075 
772.927 



Total Estimated Incremental Costs 
Annual Amount Above 1998-99 Level 
Cumulative Total Above 1998-99 Provisions 
Incremental Cost % of Salary Base 



8.765.878 



8,765,878 



6.00% 



9248.001 



18,013.880 

S26.779.758 

600% 



55 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

Item 11-99-0913 



Department: 
Item: 



Department of Human Resources (DHR) 

Ordinance implementing Amendment No. 2 to the 
Memorandum of Understanding (MOU) between the 
Laborers Union, Local 261 and the City and County of 
San Francisco. 



Description: 



In May of 1997, the Board of Supervisors approved an 
ordinance (File No. 93-97-20) to extend the term of an 
existing MOU with the Laborers Union, Local 261 for the 
four-year period from July 1, 1997 through June 30, 2001. 

The subject MOU includes the following 22 classifications, 
covering a total of approximately 918 employees. 



Classifications 


Emrjlovee Titles 


3402 


Farmer 


3417 


Gardener 


3418 


Gardener Assistant Supervisor 


3419 


Municipal Stadium Groundskeeper 


3422 


Park Section Supervisor 


3424 


Pest Control Specialist 


3428 


Nursery Specialist 


3430 


Chief Nursery Specialist 


3432 


Assistant Director 


3434 


Tree Topper 


3436 


Tree Topper Supervisor I 


7215 


General Laborer Supervisor I 


7220 


Asphalt Finisher Supervisor I 


7246 


Sewer Repair Supervisor II 


7281 


Street Cleaning Supervisor II 


7404 


Asphalt Finisher 


7421 


Sewer Maintenance Worker 


7258 


Switch Repairer 


7501 


Environmental Service Worker 


7502 


Asphalt Worker 


7514 


General Laborer 


7540 


Track Maintenance Worker 



Currently, Article III.K of the MOU contains the salary 
step advancement provisions for all classifications covered 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

56 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 



by this MOU, except Classification 7501, Environmental 
Service Worker. According to Ms. Alice Villagomez of the 
Department of Human Resources (DHR), because 
employees in Classification 7501, Environmental Service 
Worker are provisional appointments (provisional 
appointments are made when there is no list of eligible 
applicants available for appointment to permanent 
positions), such employees cannot receive salary step 
increases, unless such increases are specifically approved 
by the Board of Supervisors. 

According to Ms. Villagomez, there are currently no 
salary step advancement provisions for the employees in 
provisional appointments to Classification 7501, 
Environmental Service Worker. Attachment I, provided 
by Ms. Villagomez, explains that the proposed 
Amendment No. 2 would establish such salary step 
advancement provisions. In Attachment I, Ms. 

Villagomez states that "The proposed amendment to the 
MOU between the City and Laborers', Local 261 is 
intended to provide the mechanism by which employees, 
employed in Class 7501 Environmental Service Worker 
can advance and progress through the salary steps of the 
class based on upon the level of participation in the 
trainee program (for Classification 7501, Environmental 
Service Worker)." 

Ms. Villagomez reports that there are currently 18 
employees in Classification 7501, Environmental Service 
Worker. All 18 of these employees are provisional 
appointments. Under the subject proposed Amendment 
No. 2, the 18 employees would be placed at the step of the 
salary schedule which corresponds to their current length 
of service within the 72-week trainee program for 
Classification 7501, Environmental Service Worker. 

In addition, under the subject proposed Amendment No. 
2, employees in Classification 7501, Environmental 
Service Worker would advance to the next step of the 
salary schedule upon completion of 12 weeks of 
continuous service within the trainee program. 
Therefore, such employees would reach the sixth and final 
step of the salary schedule upon completion of the 72- 
week trainee program. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

57 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

Comment: Attachment II is a memorandum containing the 

Controller's cost analysis of the proposed ordinance. As 
reflected in Attachment II, the Controller estimates that 
this ordinance would result in increased additional costs 
of approximately $27,000 in FY 1999-2000. Ms. Peg 
Stevenson of the Controller's Office advises that such 
costs to the City would also be approximately $27,000 in 
FY 2000-2001. The Budget Analyst concurs with this 
estimate. 

Recommendation: Approval of the proposed ordinance is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

5B 



MPY 19'99 18:07 FR 



4 15 55? 4919 to 9E52046 1 Attachment I 



City and County of San Francisco 

May 19, 1999 



TO: 

FROM: 

RE: 




Department of Human Resources 



ANDREA R. GOURDINfc 
HUMAN RESOURCES DIRECT '..R 



Harvey Rose 

Budget Analyst, San Francisco Board of Supervisors 

Alice Villagomez ;V 
Deputy Director, ERD 
Department of Human Resources 



File No. 99-09-13 



The proposed amendment to the MOU between the City and Laborers', Local 261 is 
intended to provide the mechanism by which employees, employed in Class 7501 
Environmental Service Worker can advance and progress through the salary steps of the 
class based on upon the level of participation in the trainee program. 

Employees hired into class 7501 are pro\isional employees during their participation in 
the trainee program that is a transitional program which provides for the development of 
work skills to be better qualified for permanent employment in positions such as laborer 

Currently, as provisional employees, incumbents are not eligible to progress through the 
salary steps of the class. 

This amendment will also provide for the placement ar the corresponding step within the 
salary range of the class of employees already participating in the program to be credited 
with their time served to date in the program. 



44 Gough StrMt • San Francoco. CA 94103-1223 
59 



i\ CITY AND COUNTY OF SAN FRANCISCO 



OFFICE OF THE CONTROLLER 



Edward Harrington 
Controller 

John W. Madden 
Chief Assistant Controller 



May 21, 1999 



Ms. Gloria L. Young, Clerk of the Board 

Board of Supervisors 

City Hall, Room 244 

1 Dr. Carlton B. Goodlett Place 

San Francisco, CA 941 02 

RE: Amendment to the Memorandum of Understanding with Laborers Local 261 
File No. 99-0913 

Dear Ms. Young: 

In accordance with Ordinance 92-94, I am submitting a cost analysis of an amendment to Memorandum of 
Understanding between the City and County of San Francisco and Laborers Local 261 . The amendment 
covers the period July 1, 1999 through June 30, 2001, and affects approximately 18 employees with a 
salary base of approximately $300,200. Based on our analysis, the amendment will result in incremental 
costs of approximately $27,000 in FY 1999-2000. 

If you have any additional questions or concerns please contact John Madden at 554-7500. 



Sincerely, 




iward M Harrington 
Controller 



Vicki Rambo, ERD 

Harvey Rose, Budget Analyst 



City Hall * 1 Dr. Carlton B. Coodictt Place • Room 316 - San Francisco CA M102-4694 



FAX 415-S54-7466 



60 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

Item 12 - 99-0914 



Department: 
Item: 



Description: 



Department of Human Resources (DHR) 

Ordinance implementing Amendment No. 1 to the 
Memorandum of Understanding (MOU) between the 
Building Material and Construction Teamsters, Local 216 
and the City and County of San Francisco to correct 
clerical errors of omission by adding (1) Article III.F, 
providing for a minimum period of time and rate of pay 
for certain overtime assignments, (2) Article III.O, 
incorporating any rule changes made by the City's 
Retirement Board regarding the crediting of accrued sick 
leave for retirement purposes by reference to the City's 
Charter, and (3) Article IV.G, providing for City 
contributions to the Employee Tuition Reimbursement 
Program as set forth in the MOU effective July 1, 1999. 

In June of 1998, the Board of Supervisors approved an 
arbitration award (File No. 98-925) to extend the term of 
an existing MOU with the Building Material and 
Construction Teamsters, Local 216 for the three-year 
period from July 1, 1998 through June 30, 2001. 
According to Mr. Martin Gran of the City Attorney's 
Office, an arbitration award was required because the 
Teamsters, Local 216 and the City representatives could 
not reach agreement on the provisions of the subject 
MOU. 



The subject MOU includes the following two 

classifications, covering a total of approximately 157 
employees. 

Classifications Employee Titles 



7251 
7252 



Truck Maintenance Worker Supervisor 
Truck Driver 



According to Ms. Alice Villagomez of the Department of 
Human Resources (DHR), the following three provisions, 
contained in Articles III.F, III.O and IV.G, were 
"clerically omitted" from the MOU which was previously 
approved by the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



61 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 



Comments: 



Article III.F states that beginning on July 1, 1999, all 
employees covered by the provisions of this MOU who are 
pre-scheduled in advance to work overtime on a day off or 
at a time that does not overlap with their regular shift 
would be paid for a minimum of 4 hours at the overtime 
rate of time and one half. 

Article III.O states that any rule changes made by the 
City's Retirement Board regarding the crediting of 
accrued sick leave for retirement purposes shall be 
incorporated into the subject MOU by reference to the 
City's Charter. Ms. Villagomez explains that such rule 
changes are first subject to an amendment to the City's 
Charter, and then may be incorporated into the subject 
MOU by reference to the City's Charter. 

Article IV. G states that the City shall contribute annually 
to the new Employee Tuition Reimbursement (ETR) 
Program for employees covered by this MOU. Under this 
ETR Program, the City would reimburse employees 
covered by this MOU a maximum of $250 each fiscal year 
for courses approved in accordance with the guidelines 
established by DHR. According to the proposed 
Amendment No. 1, the City would contribute $6,000 into 
the ETR Program on July 1, 1999, and an additional 
$3,000 on July 1, 2000. According to the proposed 
ordinance, the three above-noted provisions would be 
effective on July 1, 1999. 

1. Attachment I is a memorandum, provided by Ms. 
Villagomez, explaining how these three provisions where 
"clerically omitted" from the subject MOU. 

2. Attachment II is a memorandum containing the 
Controller's cost analysis of the proposed ordinance. As 
reflected in Attachment II. the Controller estimates that 
this ordinance would result in increased additional costs 
to the City of $6,000 in FY 1999-2000 and $3,000 in FY" 
2000-2001 for the City's contributions to the Employee 
Tuition Reimbursement Program. The Budget Analyst 
concurs with this estimate. 



Recommendation: 



Approval of the proposed ordinance is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



62 



MAY 21 '99 9 :4B FR 



City and County of San Francisco 



May 19, 1999 
TO: 



Harvey 
Budget 



FROM: Alice Yillagomez 



Deputy 



RE: 



415 557 4919 TO 925204G1 Attachment I 



Department of Human Resources 



ANDREA R. GOURDWE 
HUMAN RESOURCES DIRECTOR 




Rose 

Analyst, San Francisco Board of Supervisors 




Director, ERD 



Department of Human Resources 
FilcNo. 99-09-14 



The proposed amendment to the MOU between the City and the Building Materials and 
Construction Teamstars, Local 216 will provide for the incorporation of tentative 
agreements which were clerically omitted from the MOU. They were generally 
referenced in the arbitration award issued by the arbitrator. These provisions, therefore, 
would have otherwise become effective July 1, 1998. 

The parties met to review the appropriate provisions needed to be added to the MOU. 

These include, codifymg the practice of a four hour minimum for pre-scheduled overtime 
assignments, incorporating by reference any rule changes by the Retirement Board if 
there is a Charter change which permits the crediting of sick leave for retirement 
purposes (this provisions is in numerous MOUs), and providing a fund for tuition 
reimbursement for the term of the MOU. 



44 Gough Mwt • San Fr*nci«co. CA W1 03- 1213 

63 



** TOTAL PAGE. 002 ** 



MAY-2B-99 lb: Jl J-Kun : ootir lun j. k u l i. e. k 

% CITY AND COUNTY OF SAN FRANCISCO 



hiLacnineni 11 




OFFICE OF THE CONTROLLER 



Edward Harrington 
Controller 

John W. Maddeu 
Chief Assistant Controller 



May 20, 1999 



Ms. Gloria L. Young, Clerk of the Board 

Board of Supervisors 

City HalL Room 244 

1 Dr. Carlton B. Goodlett Place 

San Francisco, C A 94 1 02 

RE: Amendment to the Memorandum of Understanding with Teamsters Local 16 
File No. 99-0914 

Dear Ms. Young: 

In accordance with Ordinance 92-94, I am submitting a cost analysis of an amendment to Memorandum of 
Understanding between the City and County of San Francisco and Teamsters Local 16. The amendment 
covers the period July 1, 1999 through June 30, 2001, and affects approximately 157 employees with a 
salary base of approximately $8.3 million. 

The amendment primarily corrects clerical omissions in the MOU and does not affect wage or fringe 
benefit rates. However, the amendment does specify thai the City will make contribuhons to the 
employee tuition reimbursement fund for this bargaining unit. As a result of this provision, the 
amendment will result in incremental costs of $6,000 in FY 1999-2000 and $3,000 in FY' 2000-2001. 

If you have any additional questions or concerns please contact John Madden at 554-7500. 



Sincerely, 




Iward M. Harrington 
Controller 



cc: Vicki Rambo, ERD 

Harvey Rose, Budget Analyst 



415-554-7500 



City Hall • 1 Dr. Carlton B. Coodlcc Pl»« • Room 316 • S«o Fnocsco CK X102-46W 



FAX 415-SS4--4U 



64 



Memo to Finance and Labor Committee 

May 29, 1999 Finance and Labor Committee Meeting 

Item 13 - 99-0915 



Department: 
Item: 



Description: 



Department of Human Resources (DHR) 

Ordinance implementing Amendment No. 1 to the 
Memorandum of Understanding (MOU) between the 
International Brotherhood of Electrical Workers, Local 6 
and the City and County of San Francisco. 

In May of 1997, the Board of Supervisors approved an 
ordinance (File No. 93-97-15) to extend the term of an 
existing MOU with the International Brotherhood of 
Electrical Workers, Local 6 for the four-year period from 
July 1, 1997 through June 30, 2001. The subject MOU 
includes 46 classifications, covering a total of 
approximately 676 employees. Attachment I, provided by 
DHR, contains a list of the 46 classifications covered by 
this MOU. 



Ms. Alice Villagomez of the Department of Human 
Resources (DHR) advises that this proposed Amendment 
No. 1 would provide for the consolidation of two existing 
classifications, Classification 7379, Electrical Transit 
Mechanic and existing Classification 7409, Electrical 
Transit Service Worker, into one new Classification 7371, 
Electrical Transit Mechanic, effective July 1, 1999. 
Attachment II, provided by Ms. Villagomez, explains the 
purpose of this consolidation of two existing classifications 
into a single new classification. In Attachment II, Ms. 
Villagomez states that "This amendment to the MOU 
between the City and IBEW, Local 6 will provide for the 
mechanism by which employees in new class 7371 
Electrical Transit Mechanic will advance through the 
appropriate salary steps of the class based upon a 
demonstrated proficiency level attained, rather than 
merely time served in grade." 

According to Ms. Villagomez, there are currently 143 
employees in Classification 7379, Electrical Transit 
Mechanic and 50 employees in Classification 7409, 
Electrical Transit Service Worker. All 193 of these 
employees are Municipal Railway emploj'ees. The 
biweekly cost to the City for an employee in Classification 
7379, Electric Transit Mechanic ranges from $1,642 at 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

65 



Memo to Finance and Labor Committee 

May 29, 1999 Finance and Labor Committee Meeting 

Step 1 to $1,994 at Step 5, while that cost for an employee 
in Classification 7409, Electrical Transit Service Worker 
ranges from $1,422 at Step 1 to $1,724 at Step 5. 
However, according to Ms. Villagomez, the duties of these 
two classifications are similar. 

Under the proposed Amendment No. 1, the biweekly cost 
to the City for an employee in the proposed new 
Classification 7371, Electrical Transit Mechanic would 
range from $1,642 at Step 1 to $1,994 at Step 5, the same 
salary schedule as Classification 7379, Electrical Transit 
Mechanic. 

In addition, under the proposed Amendment No. 1, all 
employees who are currently in Classification 7379, 
Electrical Transit Mechanic and Classification 7409, 
Electrical Transit Service Worker would be placed at Step 
5 and Step 4, respectively, of the proposed salary schedule 
for the new Classification 7371, Electrical Transit 
Mechanic, except provisional employees who are currently 
in Classification 7409, Electrical Transit Service Worker 
with less than 6 months of continuous service. Such 
provisional employees would be placed at Step 2 of the 
proposed salary schedule for the new Classification 7371, 
Electrical Transit Mechanic. 

As noted above, employees in the proposed new 
Classification 7371, Electrical Transit Mechanic would 
advance through the appropriate salary steps of the class 
based upon a demonstrated proficiency level attained, 
rather than merely time served at each step. However, 
under the proposed Amendment No. 1. if the Public 
Transportation Department, which would adminrster the 
proficiency examinations for this new classification, fails 
to offer such examinations, employees in Classification 
7371, Electrical Transit Mechanic would advance to the 
next step in the salary schedule upon completion of a 
minimum of 6 months of service at each step. 

Comment: Attachment III is a memorandum containing the 

Controller's cost analysis of the proposed ordinance. As 
reflected in Attachment III, the Controller estimates that 
this ordinance would result in increased additional costs 
of approximately $392,000 in FY 1999-2000 and $10,600 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

66 



Memo to Finance and Labor Committee 

May 29, 1999 Finance and Labor Committee Meeting 

in FY 2000-2001. The Budget Analyst concurs with this 
estimate. 

Recommendation: Approval of the proposed ordinance is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

67 



MAY 18'99 9:26 FR 



415 557 4919 TO 92520461 



Attachment I 
Page 1 of 2 ' 



C-i-1 



Elcc^r.*C,^s Uc^l (e 



ARTICLE I - REPRESENTATION 



C^Trt 111 ° f 55^25? (hCTdnafiCr A**™*) « ^tcrcd into by the City and 
County of San Francisco (hereinafter City) through its designated tmmJStmS^ 

L ^ts^^^ 

IA. RECOGNITION 

&!!MbnS Jf^'f^B'othatood of Bectrical Workers Local Union 
^ ?? . 6) " *" exdus,vc ^"^tative of all employees of the Ciw 
and County of San Francisco assigned to Bargaining Unit 1-L including- 



040l971»-fin 



6248 

6249 

6250 

6252 

7214 

7216 

7229- 

7235- 

7238- 

7244- 

7253- 

7255- 

7256- 

7257- 

7273- 

7274- 

7275- 

7276- 

7279- 

7285- 

72S7- 

7308- 

7318- 

7319- 

7329- 

7338- 

7345- 

7363- 

7364- 



- Electrical Inspector 

- Senior Electrical Inspector 

- Chief Electrical Inspector 

- Line Inspector 

- Electrical Transit Equipment Superintendent 

- Electrical Transit Shop Supervisor I 

- Transmission Line Supervisor I 

- Transit Power Line Supervisor I 

- Electrician Supervisor 1 

- Power Plant Supervisor I 

- Electrical Transit Mechanic Supervisor I 

- Power House Electrician Supervisor I 

- Electric Motor Repaid Supervisor I 

- Communication Line Supervisor I 

- Communication Line Worker Supervisor II 

- Transit Power Line Worker Supervisor II 

- Cable Splicer Supervisor I 

- Electrician Supervisor H 

- Powerhouse Electrician Supervisor II 

- Tra nsmis sion Line Worker Supervisor II 

- Supervising Electronic Maintenance Technician 

- Cable Splicer 
Electronic Maintenance Technician 
Electric Motor Repairer 

Electronics Maintenance Technician Assistant Supervisor 

Electrical Line Worker ^^ 

Electrician 

Power House Electrician 

Power House Operator 



Memorandum of Understanding/July 1, 1997 - June 30, 2001 

Chy and County of San Franci' oand 

Electrical Workers, Local 6 (1BEW) 

1 



68 



10Y 18'99 9:2S FR 



415 557 4919 TO 92520461 



Attachment 1 
Page 2 of 2~ 



e 



LUcf>»cvc, Ai Lot<*[ (^ 



7365 - Senior Power House Operator 

737)9 * Electrical Transit Mechanic 

7380 - Electrical Transit Mechanic Assistant Supervisor 

739p - Welder 

7408 - Assistant Power House Operator 

7409 • Electrical Transit Service Worker 

7430 - Assistant Electronic Maintenance Technician 

74312 - Electrical Line Helper 

7480 - Power Generation Technician I 

7482 - Power Generation Technician II 

7484 - Senior Power Generation Technician 

7488 - Power Generation Supervisor 

7510 - Lighting Fixture Maintenance Worker 

924 - Airport Electrician 

9241 - Airport Electrician Supervisor 

92^2 - Head Airport Electrician 

9358 - Crane Mechanic Supervisor 

and any and all employees assigned to new or different classifications hereafter who 
perform work within the scope of work covered by this Agreement or are accreted 
to bargaining Unit 1-L pursuant to the procedures of the Employee Relations 
Ordinance 



The work covered by and subject to the terms and conditions of this Agreement shall 
be that work which upon execution of this Agreement is currently being assigned to 
employees in Bargaining Unit 1-L in the c l a s s if ications heretofore enumerated and/or 
claimed by IBEW Local 6. 



LB. INTENT 



This Agreement shall, to the extent its terms address a subject within the scope of 
bargaining and arbitration pursuant to Charter Section 8.409 et seq. supersede and 
prevail oyer any contrary ordinance, resolution, rule, charter provision and/or 
regulation of any agency of the City and County of San Francisco, including the 
Office of Ihc Mayor, the Board of Supervisors, City Departments and/or City and 
County Boards or Commissions. 



LC. NO WORK STOPPAGES 



040197l5-fin 



It is understood and agreed that during the term of this Agreement neither the Union 
nor any person covered hereunder shall engage in a strike, slowdown or work 
stoppage against the City and County of San Francisco, nor shall the Union or any 



Memorandum of Understanding/Jury 1, 1997 - June 30, 2001 

City and County of Sat. 'ranciscc jnd 

Electrical Workers, Local 6 (IBEW) 

2 



69 



MAY 19'99 19 :07 FR 



Acuacnment l 



415 557 4919 TO 92520461 



City and County of San Francisco 



May 19, 1999 




Department of Human Resources 



ANDREA R. GOURD4NE 
HUUAN RESOURCES DIRECTOR 



TO: Harveyj Rose 

Budgei Analyst, San Francisco Board of Supervisors 



FROM: 



RE: 



Alice Villagomez RY 
Deputy Director, ERD 
Department of Human Resources 

File No. 99-09-15 



This amendment to the MOU between the City and IBEW, Local 6 will provide for the 
mechanism by which employees in the new class 7371 Electrical Transit Mechanic will 
advance through the appropriate salary steps of the class based upon a demonstrated 
proficiency level attained, rather than merely time served in grade. 

This new class is being created as a result of a study of the job duties being performed by 
employees in classes 17379 Electrical Transit Mechanic and 7409 Electrical Transit 
Service Worker. While the salary of class 7409 is less than the salary of class 7379, the 
duties being performed by employees in both classes were found to be very similar. 

As such, it was determined to be appropriate to consolidate these classes into a new class 
which in turn will provide for increased operational flexibility in meeting service needs 
while compensating employees equally for similar duties performed. 



I Googh StrM* • San Franci»co, CA 94103-1233 

70 



** TOTAL PAGE. 004 ** 




Attachment III 



& CITY AND COUNTY OF SAN FRANCISCO OFFICE OF THE CONTROLLER 



Edward Harrington 
Controller 

John W. Madden 
Chief Assistant Controller 






May 20, 1999 

Ms. Gloria L. Young, Clerk of the Board 

Board of Supervisors 

City Hall, Room 244 

1 Dr. Carlton B. Goodlett Place 

San Francisco, CA 941 02 

RE: Amendment to the Memorandum of Understanding with IBEW Local 6 
File No. 99-0915 

Dear Ms. Young: 

In accordance with Ordinance 92-94, I am submitting a cost analysis of an amendment to Memorandum of 
Understanding between the City and County of San Francisco and International Brotherhood of Electrical 
Workers Local 6. The amendment covers the period July 1, 1999 through June 30, 2001, and affects 
approximately 193 employees with a salary base of approximately $9-6 million. 

Based on our analysis, the amendment will result in incremental costs of approximately $392,000 in FY 
1999-2000 and $10,600 in FY 2000-2001. The amendment will result in a cost increase of approximately 
4 % above base salaries in fiscal year 1999-2000. 

If you have any a d ditional questions or concerns please contact John Madden at 554-7500. 



Sincerely, 




Iward M. Harrington 
Controller 

cc: Vicki Rambo, ERD 

Harvey Rose, Budget Analyst 



41S-SS4-7500 City Hall • I Dr. C»rltoo B. Goodlen Pl*« • Room 316 * San Fr»oci»co CA X102-44X FAX 415-SS4-7466 



71 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

Item 14 - File 99-0077 

Note: This item was continued by the Finance and Labor Committee at its meeting 
of February 3, 1999. This report is based upon a pending Amendment of the 
Whole as reported to the Budget Analyst by the Department of Real Estate. 



Departments: 
Item: 



Location: 

Purpose of 

Management 

Agreement: 



Owner: 
Manager: 

Term of Lease: 
Square Footage: 



Department of Real Estate (DRE) 

Resolution authorizing and approving a new Management 
Agreement for a cafe on the main floor of City Hall in the 
North Light Court of City Hall between the City and 
Events Management Inc., dba McCall and Associates. 

Main floor in the North Light Court of City Hall at 1 Dr. 
Carlton B. Goodlett Place 



To permit operation of a cafe at City Hall (the "Light 
Court Cafe") on the main floor of the building, in the 
North Light Court. 

City and County of San Francisco 

Events Management Inc., dba McCall and Associates 
("McCall and Associates") 

Month-to-month, retroactive to January 4, 1999. 

According to Mr. Steve Nelson, Director of Administrative 
Services, the space under the proposed Management 
Agreement consists of approximately 3,000 square feet on 
the main floor of City Hall in the North Light Court. 
Under the proposed Management Agreement the space is 
to be shared by McCall and Associates and any other 
catering services as authorized by the Department of 
Administrative Services. The space consists of a seating 
area accommodating at least 48 persons and counter 
space for serving food and beverages. Additionally, a 
catering support room behind the counter is used by 
McCall and Associates. This catering room consists of an 
additional 300 to 400 square feet, according to Mr. 
Nelson. No doors, partitions, or locks separate the Light 
Court Cafe from the rest of the North Light Court, which 
covers 7,500 square feet. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

72 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

Rental Payments to be 

made by McCall and 

Associates to the City: Seven percent of gross revenue (no base rent would be 
paid). According to Mr. Mark Zuffo of the Department of 
Real Estate, McCall and Associates have paid the City 
seven percent of its gross revenues on a monthly basis 
since January 4, 1999. To date, McCall and Associates 
have paid the City $1,716, in the following amounts: 



Februarv 1999 


$ 475 


March 1999 


350 


April 1999 


443 


May 1999 


448 



Total 



$1,716 



Based on the payments above, to date McCall and 
Associates have paid an average monthly rate of $429. 



Utilities Provided 
by City: 

Janitorial Services 
by McCall and 
Associates: 



Description: 



The City will pay for all utilities. 



McCall and Associates would be responsible for janitorial 
services at the leased space. 

Light Court Cafe Services and Operation 



McCall and Associates has been operating the Light 
Court Cafe in the subject space since January 4, 1999. 
Currently, and under the proposed Management 
Agreement with McCall and Associates, the Light Court 
Cafe provides "upscale light faire food from behind the 
historic counter" in the North Light Court, consisting of 
coffee, espresso, pastries, juices, sodas, and beer and wine 
after 5 p.m. No items are cooked on the premises, all 
cooking and baking is performed off-site. Food and 
beverages served within the space are required to be 
served using china or glass utensils. The hours of 
operation are 11:00 a.m. through 6:00 p.m. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



73 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 



Differences Between the Light Court Cafe (on main 
floor of City Hall) and the City Hall Cafe (on ground 
floor of City Hall) 

Currently, the Light Court Cafe operates on the main 
floor of City Hall, and the City Hall Cafe operates on the 
ground floor of City Hall. 

According to Mr. Zuffo, although both cafes are open to 
the public, the proposed Management Agreement with 
McCall and Associates pertaining to the proposed Light 
Court Cafe on the main floor of City Hall provides for a 
more upscale cafe than does the previously approved 
Management Agreement with L & L for the City Hall 
Cafe, which is located in a larger area on the ground floor 
of City Hall and which operates as a cafeteria. 

Under Section 6.1 of the proposed Management 
Agreement with McCall and Associates, the Light Court 
Cafe would serve beer and wine after 5 p.m., which the 
City Hall Cafe does not serve at any time. Also under 
Section 6.1 of the proposed Management Agreement with 
McCall and Associates, all food and beverages must be 
served on china or glass utensils, and may not be served 
using plastic flatware or paper plates, as are used in the 
City Hall Cafe on the ground floor. Finally, under Section 
6.2 of the proposed Management Agreement with McCall 
and Associates, the Light Court Cafe must maintain the 
hours of operation between 11:00 a.m. through 6:00 p.m., 
whereas the City Hall Cafe on the ground floor maintains 
the hours of operation between 7:00 a.m. and 4:00 p.m. 
Mr. Legnitto explains that a provision exists for McCall 
and Associates to extend the hours of operation to after 
6:00 p.m., which might be exercised in the future with 
approval from the City Hall Building Manager, under the 
Department of Administrative Sendees. 

Utilization of Subject Space 

According to Mr. Zuffo and Mr. Legnitto, under the terms 
of the proposed Management Agreement, McCall and 
Associates is required to purchase and pay for all 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

74 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

necessary equipment which it needs in order to operate 
the Light Court Cafe. The DRE could not provide an 
estimate of such equipment costs. 

According to Mr. Zuffo, McCall and Associates currently 
has two employees working at the proposed Light Court 
Cafe. McCall and Associates is obligated under the 
Management Agreement to properly staff the Light Court 
Cafe. 

Mr. Zuffo estimates that the current seating capacity in 
the dining space of the Light Court Cafe is 48, but the 
maximum number is under the control of the Building 
Manager. Under the proposed Management Agreement, 
McCall and Associates would be required to vacate both 
the dining space and counter space when other catering 
preparations for City Hall events, as authorized by the 
Department of Administrative Services, are scheduled in 
the subject area of the Light Court Cafe. 

Comments: 1. Selection of McCall and Associates 

According to Mr. Zuffo, on September 8, 1998, the DRE 
sent out a Request for Proposals (RFP) to over 100 firms 
for the management of the proposed Light Court Cafe and 
the management of the City Hall Cafe. The RFP was also 
advertised in various newspapers and periodicals. 

Mr. Zuffo reports that written proposals for the 
management of the Light Court Cafe were submitted by 
only two firms in response to the RFP by the deadline of 
September 25, 1998. According to Mr. Zuffo, these two 
proposals were considered unacceptable by the Selection 
Committee (composed of Mr. Zuffo, Mr. Nelson, and Mr. 
Ben Rosenfield of the Mayor's Office) for the management 
of the Light Court Cafe on the main floor of City Hall. 

Subsequently, in an effort to provide for the Light Court 
Cafe operation by January 4, 1999, the opening day of the 
renovated City Hall, the Director of Property negotiated 
and entered into the proposed Management Agreement 
with McCall and Associates on a sole source basis, after 
McCall and Associates contacted the Selection 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

75 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

Committee. The Light Court Cafe is currently operated 
by McCall and Associates. 

The Attachment to this report, provided by Mr. Zuffo, is a 
memo explaining why McCall and Associates was chosen 
on a sole-source basis, without any further attempt at a 
competitive bidding procedure. 

2. McCall and Associates have occupied the subject space 
since January 4, 1999. Therefore the proposed resolution 
should be amended to provide for retroactivity. 

Recommendations: 1. Amend the resolution to provide for retroactivity. 

2. Approval of the proposed resolution, as amended, is a 
policy matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

76 



Date: 1/25/99 

Sender. Mark Zufio 

To: Saralyn Ang 

cc: Steve Legnirto, Tony DeLuc 

Priority: Normal 

Subject: LiahtCourt Cafe 



An ?_F? was conducted in September of 1996 for both a cafe on the 
ground floor and a cafe on the main floor of City Hall. An acceptable 
bid was chosen for the ground floor cafe (City Kail Cafe) in November 
ct IPSE. Neither of the two bids submitted for the main floor Light 
Court Cafe were acceptable to the selection committee. In late 
November, McCalls approached the selection committee with an idea fo: 
the Light Court Cafe. They submitted a written proposal with an 
artist's rendition of the Light Court area with the cafe. The 
selection committee accepted their proposal. Both cafes opened for 
business on Jan. 5, 1999 and seem to be doing well so far. 

It you have any other questions regarding this matter please contact 
me at 554-9867. 

Mark Zuffo 

Real Estate Department 



77 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 



Item 15 - File 99-0747 

Department: 

Item: 



Description: 



Administrative Services 

Resolution authorizing the Director of Administrative 
Services to enter into a Second Amendment to the 
operating and licensing agreement with MVX 
Communications (formerly Winston Taylor, Inc.) for the 
operation of the San Francisco Affinity Phone Card 
Program. 

In May 1996, the Board of Supervisors, approved an 
ordinance (File 186-96-3) which authorized a three-year 
operating and licensing agreement with Winston Taylor, 
Inc. (now MVX Communications) for the San Francisco 
Affinity Phone Card Program. Subsequently, in April 
1997, the Board of Supervisors, approved a resolution 
(File 172-97-25) which authorized a First Amendment to 
the operating and licensing agreement which reduced the 
City's royalty percentage for phone card sales generated 
by general retailers from 18.5% to 13.5%. 

Under the San Francisco Affinity Phone Card Program, 
prepaid phone cards with the seal and logo of the City and 
County of San Francisco are sold by retailers and at 
vending machines located at the Airport, City Hall, and in 
other locations throughout the City in $5, $10, and $20 
increments. Currently, there are 44 locations (vending 
machines and retailers) where the phone card is sold. 
Under the program, the City receives a percentage of 
gross revenues realized by MVX Communications from 
the sale of the phone cards according to a schedule of 
rates ranging from 13.5% to 50.0% of revenue generated. 

According to Ms. Kofo Domingo of the Administrative 
Services Department, MVX Communications currently 
remits revenues from the sale of such phone cards to the 
City averaging $12,000 per month, or $144,000 annually. 

The proposed resolution would authorize the Director of 
Administrative Services to enter into a Second 
Amendment to the operating and licensing agreement 
with MVX Communications for the operation of the San 
Francisco Affinity Phone Card Program. The Second 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



78 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 



Amendment contains the following three changes to the 
current operating and licensing agreement: 

1. Royalties for Recharge Revenue 

Ms. Domingo advises that MYX Communications has 
recently implemented a service where persons who 
purchase a San Francisco Affinity Phone Card may add 
additional minutes, or re-charge, their phone card by 
calling a customer service number or signing up for an 
automatic recharge plan. Under the current agreement, 
the City receives 20 percent of Recharge Revenues 
realized by MYX Communications. According to Ms. 
Domingo, MYX Communications has requested that a 
reduction in the City's royalties from Recharge Revenues 
be made because MVX Communications currently offers 
reduced recharge rates of approximately $0.09 cents per 
minute for long distance calls within the United States 
versus a rate of approximately $0.19 cents per minute for 
such calls when the card is initially purchased from a 
vending machine. 

Under the proposed resolution, the City's royalty 
percentage of Recharge Revenues would be reduced from 
20 percent to 10-14 percent based on the following 
schedule: 

% of Gross Recharge Revenues and 
range of dollar amounts to 
be paid on a monthly basis 
Monthly Gross by MYX Communications 

Recharge Revenues to the Citv 

$25,000 or under 14% ($0 - $3,500) 

$25,001 - $50,000 13% ($3,250 - $6,500) 

$50,001 - $75,000 12% ($6,000 - $9,000) 

$75,001 - $100,000 11% ($8,250 - $11,000) 

Over $100,000 10% ($10,000 or more) 

Ms. Domingo reports that, to date, MYX Communications 
has had only one customer utilize the Recharge Program 
and therefore it is anticipated that the proposed reduction 
to the royalties due to the City from the Recharge 
Program will not result in a reduction in the monthly 
revenues currently received by the City from sale of the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

79 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 



San Francisco Phone Cards (approximately $12,000 per 
month). 

2. Cooperative Marketing Fund 

Ms. Domingo advises that there are no funding 
requirements for marketing the San Francisco Affinity 
Phone Card Program currently contained in the operating 
and licensing agreement between the City and MVX 
Communications. Under the proposed amendment, within 
30 days of the approval of this resolution, MVX 
Communications would contribute $5,000 to a 
Cooperative Marketing Fund and thereafter on a monthly 
basis contribute a percentage of gross revenues from the 
San Francisco Affinity Phone Card into the Marketing 
Fund based on the following schedule: 

% of Gross Revenues and 

range of dollar amounts to 

be contributed on a monthly basis 

by MVX Communications 

Monthly Gross Revenues to Marketing Fund 

$100,000 or under 2% ($0 - $2,000) 

$100,001 - $125,000 3% ($3,000 - $3,750) 

$125,001 - $150,000 4% ($5,000 - $6,000) 

Over $150,000 5% ($7,500 or more) 



Under the proposed resolution, the Marketing Fund 
would be used solely to promote the San Francisco 
Affinity Phone Card Program and would be jointly 
administered by a Marketing Committee consisting of one 
representative each from MVX Communications, the City, 
and the San Francisco Convention and Visitors Bureau. 

3. Contract Extensions 

Under the original three-year agreement between the 
City and with Winston Taylor, Inc. (now MVX 
Communications), effective November 22, 1995 through 
November 22, 1998, the City has the right to extend the 
term for up to two additional two-year periods, for a total 
of seven years.. Under the proposed Second Amendment, 
the City would have the right to extend the term of the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

80 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 



operating and licensing agreement for up to six additional 
one-year periods, for a total of nine years. Under the 
proposed Second Amendment, the initial term of the first 
extension of the contract would be retroactive from 
November 22, 1998 to November 22, 1999. According to 
Ms. Domingo, the Administrative Services Department is 
requesting the change from two-year contract renewal 
increments to one-year increments so that the 
Department can re-evaluate the contract each year. 



Comment: 



Recommendation: 



Ms. Domingo reports from the commencement of the San 
Francisco Affinity Phone Card Program in November 
1995 to April 1999, the City has received royalties 
totaling $394,917. All of these revenues are credited to 
the General Fund and are subject to appropriation 
approval by the Board of Supervisors. In addition to the 
funds of $394,917 remitted to the City's General Fund, 
Ms. Domingo states that the Airport receives a portion 
(approximately 10 percent) of all revenues from the sale of 
the phone cards at the Airport. 

Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



81 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

Item 16 - File 99-1012 



Department: 
Item: 

Description: 



Mayor's Office of Public Finance 

Motion awarding bonds and fixing definitive 
interest rates for $20,000,000 General Obligation 
Bonds (Affordable Housing), Series 1999A. 

On April 26, 1999, the Board of Supervisors 
approved a resolution authorizing and directing the 
sale of $20,000,000 of General Obligation 
Affordable Housing Bonds Series 1999A (File 98- 
212). The proceeds from the sale of these bonds will 
be used to finance the development of affordable 
housing for low-income households and to provide 
down payment assistance to low-income and 
moderate-income first time homebuvers in the Citv. 



Comment: 



Recommendation: 



Ms. Laura Opsahl of the Mayor's Office of Public 
Finance advises that the bids for the proposed 
bonds are scheduled to be opened at 8:00 am on 
Wednesday, May 26, 1999, and that unless all bids 
are rejected, the Finance and Labor Committee will 
be asked to award the bonds to the bidder whose 
bid represents the lowest true interest cost to the 
City. Ms. Opsahl reports that the Mayor's Office of 
Public Finance will submit an Amendment of the 
Whole to the Finance and Labor Committee's 
scheduled meeting at 10:00 am on Wednesday, May 
26, 1999, which will list the winning bidder, the 
other bidders, and the interest rate that each 
bidder offered to the City. 

Approve a motion which awards the subject bonds 
to the low bidder, which represents the lowest true 
interest cost to the City. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

82 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

Item 17 - File 99-0912 



Department: 
Item: 

Amount: 
Source of Funds: 
Description: 



Port 

Request for release of $1,100,000 of reserved funds 
for eartbquake-related capital improvements at 
Pier 70. 

$1,100,000 

Port Operating Funds 

On January 31, 1991, the Finance Committee of 
the Board of Supervisors approved a supplemental 
appropriation for $6,374,971 for repair of 
earthquake-damaged facilities on Port property, 
and placed $6,261,404 of these funds on reserve, 
pending the selection of outside contractors and 
submission of the contract cost details. Since that 
time, the Finance Committee has approved releases 
on those reserved funds of $3,283,055 for 
earthquake work at Pier 45, the Ferry Building, 
Ferry Plaza and Pier 27-29, such that there is a 
current balance of $2,978,349 remaining on 
reserve. The proposed request for release of 
$1,100,000 of reserve funds would be used to cover 
the costs of earthquake repairs on Pier 70, and 
would result in a remaining reserved balance of 
$1,878,349. 

Pier 70, located at the foot of Potrero Hill, at 22 nd 
and Illinois Streets, is the Port's only ship repair 
yard and is currently leased to the San Francisco 
Drydock company which operates the ship repair 
yard. On February 4, 1999, the Port Commission 
approved a lease amendment between the Port and 
San Francisco Drydock to extend the terms of the 
lease until December 16, 2002. In accordance with 
Charter Section 9.118, this lease amendment was 
not subject to the Board of Supervisors approval 
because the lease amendment was for maritime 
purposes. As part of this lease amendment, the 
Port agreed to use the requested $1,100,000 of 
reserved funds towards the costs of earthquake 
repairs needed at Pier 70, subject to approval by 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



83 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

the Finance and Labor Committee. In addition, 
under the lease amendment the Port agreed to 
have such funds available for use by San Francisco 
Drydock for these improvements by June 30, 1999. 

Budget: Attachment 1, provided by the Port, identifies the 

earthquake-related capital improvements proposed 
for Pier 70, for a total cost of $1,210,000. This total 
cost of earthquake-related renovations would be 
paid for with the requested release of reserve funds 
of $1,100,000 plus $110,000 of rent credits for San 
Francisco Drydock (See Comment 5 for further 
details). 

As shown in Attachment 1, of the total $1,210,000, 
the Port is proposing to expend $440,000 for 
renovations to Building 104, which will be used for 
administrative offices. The Port reports that 
earthquake damage at Pier 70 necessitated the 
closure of Building 111, the former administrative 
office building, and has forced San Francisco 
Drydock to inhabit temporary office trailers since 
then. The balance of $770,000 ($1,210,000 total 
cost less $440,000 for Building 104) would be used 
for repairs to the bathroom, roof, pier, utilities aad 
asphalting, grading and paving renovation projects 
outlined on Attachment 1. 

Comments: 1. In response to inquiries by the Budget Analyst's 

Office regarding why the Port is only now 
requesting to spend $1,100,000 in May of 1999 
from funds previously reserved for earthquake 
repairs in 1991, eight years ago, the Port provided 
a memorandum contained in Attachment 2. As 
discussed in Attachment 2. the Port is requesting 
the release of the subject $1,100,000 of Port 
Operating Funds because, in March of 1999, after 
repeated claims and follow-up appeals, the Federal 
Emergency Management Agency (FEMA) denied 
the Port's last appeal for funding for the cost of 
earthquake mitigation work related to Pier 70, 
which would be renovated with the proposed funds. 

2. Furthermore, Mr. Ben Kutnick of the Port 
reports that in addition to the remaining 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

84 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 



$1,878,349 on reserve, tbe Port has $563,181 of 
previously appropriated but unexpended funds, for 
a total remaining balance of $2,441,530 of Port 
Operating Funds available for additional 
earthquake-related repairs at the Port, after Pier 
70. According to Mr. Kutnick, barring any 
emergencies, the Port intends to retain this balance 
until FEMA completes their final inspection and 
audit, in case any of the previous Federal and State 
expenditures are disallowed by FEMA and 
therefore required to be paid from Port Operating 
Funds. Mr. Kutnick reports that the Port will 
submit a close-out request to FEMA in June of 
1999 for the Ferry Building, which is the last 
earthquake-related project. 

3. Ms. Veronica Sanchez of the Port reports that, as 
shown in Attachment 1, San Francisco Dry dock 
employees will perform $563,750, or approximately 
47 percent of the $1,210,000 proposed earthquake 
repair work. Ms. Sanchez reports that the Port did 
not competitively bid this contract, but rather 
awarded the work to San Francisco Drydock on a 
sole source basis. According to Ms. Sanchez, using 
San Francisco Drydock employees for the work 
provides better utilization of their metal trade 
workers during slow ship repair periods. From the 
Port's perspective, Ms. Sanchez notes that another 
advantage of using San Francisco Drydock is that 
the Port did not have to use Port resources to put 
together the competitive bid documents and 
oversee that process. Ms. Sanchez further notes 
that awarding the contract to San Francisco 
Drydock generates work for one of the Port's 
tenants, which is ultimately good for the Port. 

4. For the remainder of the work, Ms. Sanchez 
reports that San Francisco Drydock will contract 
with other subcontractors through a competitive 
bid process. However such competitive bid process, 
the same process the Port's shipyard uses for 
Federal contracting, is not subject to the Port's 
approval. Ms. Sanchez reports that these 
subcontractors have not yet been selected. 
However, according to Ms. Sanchez, San Francisco 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

85 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 

Drydock has agreed to use good faith efforts to 
designate 30 percent of such subcontracts for 
minority and women-owned businesses. However 
as noted, final subcontractor selection would not be 
subject to Port approval. 

5. Under the terms of the amended lease agreement 
between the Port and San Francisco Drydock, the 
rent payable to the Port is currently $66,667 per 
month, or approximately $800,000 annually. In 
accordance with the amended lease terms, the rent 
is scheduled to increase in December of 1999 to 
$75,000 per month ($900,000 annually) and again 
in December of 2000 to $104,167 per month 
($1,250,000 annually). 

6. Given that the total capital improvement project 
cost is $1,210,000, and the subject request is for 
only $1,100,000, the Port has also agreed to provide 
$110,000 of funds to San Francisco Drydock 
through rent credits. Such rent credits would be 
applied based on the invoices, receipts and 
statements of accounting submitted by San 
Francisco Drydock as the capital improvement 
project work is completed, but the rent credits 
cannot exceed one-half of the monthly rent due. As 
a result, the actual rent to be received by the Port 
from San Francisco Drydock for the first year 
would be approximately $690,000 ($800,000 annual 
rent less $110,000 rent credit). 

Recommendation: Approval of the proposed release of $1,100,000 in 

Port Operating Funds is a policy matter for the 
Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

86 



Memo to Finance and Labor Committee 

May 26, 1999 Finance and Labor Committee Meeting 



cc: Supervisor Yee 

Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 




Harvey M. Rose 



Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Attachment 1 



Earthquake Capital Improvements 
Admin Building Renovations 



Tot $ Est SFDWork Sub-Contract 

$440,000 $220,000 $220,000 



Admin and Production Relocation 
Building 104 Focus 



$440,000 



Asphalting, Grading and Paving 


$55,000 


SO 


$55,000 


Area North of Bilding 36 
Bathroom Repairs 


$55,000 
$165,000 


$123,750 


$41,250 


Demo and Removal 
Replacement 


S50.000 
S1 15.000 






Repair 75' X 75" Sinking Pier Section 


$275,000 


$110,000 


$165,000 



Demo and Removal $65,000 

Fabrication & Install of Bridge S210.000 

Repair 75' X 75' Sinking Accessway (cable only) S55.000 



$55,000 



SO 



Roofing Repairs 



S110,000 



$0 



$110,000 



Building #105 
Building # 38 
Building #109 

Utilities Repair Under Piers 



S37.000 
S37.000 
$36,000 

$110,000 



S55,000 



$55,000 



Sewage Systems $66,000 

Fire Protection System ^ $44,000 

Total of Earthquake Improvements $1,210,000 



$563,750 



$646,250 



Note: The above information is based on best estimates. The values are estimates only and the final 
dollar amounts may vary from the estimates. 



MAY dYi 'yy 04:j4KTl HOKT OF SF EXECUTIVE 



PORT OF SAN FRANCISCO 



MEMORANDUM 

May 20, 1999 



P. 1/3 

Attachment 2 
Page 1 of 3 




Ferry Building 

San Francisco, CA 941 1 1 

Telephone 415 774 04oo 

Fsx 416 274 0528 

www.Bfport.com 



TO: 



FROM: 



SUBJECT: 



Mr. Harvey Rose, Budget Analyst 
Attn: Ms. Debra Newman 



Cliff Jarrard 

Chief Harbor Engineer 



a 




PIER 70 RELEASE OF RESERVE FUNDS 

San Francisco Drydock Earthquake Repairs 



1. REASONS FOR DELAYS IN REPAIRING BUILDING 111 

Since 1989, the Port has diligently tried to get FEMA/OES to cover both the costs 
of earthquake related seismic repairs and upgrading Building 111 according to local 
building code standards. Several claims and appeals were filed with FEMA to 
recover these costs. The reason for all denials is that FEMA does not recognize 
the current SF Building seismic requirements that were not as clearly defined 
in 1989. 

Described below is a summary of the major events related to our efforts to secure 
reimbursement from FEMA/OES 

• FEMA/OES prepared repair estimate of repairing Building 111 shortly after the 
earthquake. The Port hired a consultant - T.Y. Lin - to prepare our own repair 
assessment and engineers estimate. Our estimate took into account the S.F. 
Building Code requirements that the building be seismically upgraded to meet 
the current code. FEMA/OES did not take this into account in their damage 
repair assessment. Thus, our repair estimate was approximately $4 million 
while FEMA/OES 's repair estimate was approximately $1 million. We asked 
FEMA/DSR for $4 million, the amount of money necessary to bring the 
building up to current code. 



89 



MAY 20 '99 04:34PM PORT OF SF EXECUTIVE P. 2/3 

Attachment 2 



Pa^e 2 of 3 



Mr. Harvey Rose, Budget Analyst 
Pier 70 Release of Reserve Funds 
May 20, 1999 
Page 2 



• In late 1991, FEMA denied the Ports request for money to bring the building up 
to the current building code. The Port appealed in early 1992. This appeal was 
also denied. 

• The Port filed a second appeal later in 1992. We were awaiting a response to 
our appeal when we were advised by FEMA/OES to treat the project as a 
hazard mitigation project. The Port modified the second appeal and applied for 
hazard mitigation fund. 

• In 1994, the Port received an additional $50,000 from FEMA/OES. 

• In 1995, the Port requested for the additional $3,000,000 from FEMA/OES. 
FEMA denied the request in early 1997. The Port filed an appeal to this denial 
in mid - 1997 

• In March 1999, FEMA denied that appeal. 



2. OPPORTUNITY FOR RECOVERING FEMA FUNDS 

FEMA/OES has offered $1.2 million dollars for repair and mitigation of Building 
111 or another building that can be used for administrative offices. However, this 
offer does not meet the total costs of repairing Building 111 up to local building 
code standards and other work. The Port estimates that even with the FEMA/OES 
reimbursement of $1.2 million, it would be $3 million short of the required 
funding needed to make the building useable according to current code 

At this time, the Port is unable to commit funds appropriated for earthquake 
repairs towards Building 111 as we may have other earthquake repair and 
mitigation residual costs relating to projects like the Ferry Building, Pier 45, the 
Ferry Plaza and Piers 27/29. 

Building 111 is in a historical district and it will take longer to secure permits for 
repairing and upgrading the facility for administrative use. This time schedule 
does not respond to the tenant's need to move out of the trailers it has been 
occupying for the past ten years. 



I//clin7pier70budgetanvs.doc 



90 



riHY d)a 'yy w-jarn wk\ t* bi- lxlcuiive . P. 3/3 

Attachment 2 



Page 3 of 3 

Mr. Harvey Rose, Budget Analyst 
Pier 70 Release of Reserve Funds 
May 20, 1999 
Page 3 



The Port will accept FEMA's offer to pay for the $1 .2 million for Building 1 1 1 and 
request an extension of time to use these funds for construction. FEMA is expected 
to conclude its audits and inspections of all the earthquake projects of the Port after 
June 1999. FEMA has not provided the Port with an exact time of when this process 
will be concluded. When the audits are completed, the Port will be in a better 
position to evaluate the availability of the remaining Port earthquake funds (as 
appropriated in the March 1991 Supplemental). 

At that time, the Port will have two options: 1) Undertake the seismic 
improvements and other required upgrades to Building 111 with FEMA and Port 
funds for office space for another tenant; 2) Invite private developers to bid on 
design, construction and management of the building for an office use. 

Until these issues are resolved, the repair of Building 104 as the Administrative 
Offices for San Francisco Drydock is the most cost efficient means of meeting our 
tenant's immediate needs to relocate out of the trailers. 

Thank you for your consideration. If you have any further questions, please don't 
hesitate to contact me at 274-0541. 



cc; Peter Dailey 
Alex Lee 
Veronica Sanchez 
Cliff Jarrard 



I//clin7pier70budgetanvs.doc 



91 




City and County of San Francisco 

Meeting Minutes 

Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B. 

Goodlett Place 

San Francisco, CA 

94102-4689 



Wednesday, June 02, 1999 



10:00 AM 
Special Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 



The meeting convened at 10:10 a.m. 



991053 [Budget Workshop-Various Departments] 

Budget Workshop to review in depth the budgets for the Police Department and the Fire Department. (Clerk of 

the Board) 

3/8/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Matthew Hymel, Mayor's Budget Office: Chief of Police Department . Fred 

Lau. Kim Burton, Mayor's Office of Criminal Justice: Chief of Fire Department, Robert Demmons ; Debra 

Ward, Chief Financial Officer, Fire Department; Deputy Chief, of Fire Department, Patrick White; Jerry, 

Local 790 Representative. 

FILED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



ADJOURNMENT 

The meeting adjourned at 11:57 a.m. 



DOCUMENTS DEPT. 

JUN 1 6 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 



City and County of San Francisco 



Printed at 4:10 PM on 6/IV9 



0.254 




City and County of San Francisco 

Meeting Minutes 

Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B. 

Goodlett Place 

San Francisco, CA 

94102-1689 



Thursday, June 03, 1999 



10:00 AM 

Special Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 

The meeting convened at 10:13 a.m. 

991 055 [Budget Workshop-Department of Public Health] 

Budget Workshop to review in depth the budgets for the Department of Public Health. 

3/10/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers. Supervisors Yee, Ammiano, Bierman; Dr. Mitchell Katz, Director, 

Department of Public Health; Matthew 1 Hymel, Mayor's Budget Office; Bill Hirsh, Mental Health Association; 

Jonathan Vernick, Baker Place; Stephen Vernon, Family Service Agency; Richard Heasley. San Francisco 

Mental Health Contractors Association. 

FILED. 



Introduction of Guests 

Supervisor Yee introduced Ying-Ke Liu, Counsellor of Taipei City Government, Republic of China (Sister City 
to the City of San Francisco) and 37 high school students from Taipei City who sang a song and presented 
gifts to the members of the Committee. 



ADJOURNMENT 

The meeting adjourned at 12:01 p.m. 



DOCUMENTS DEPT. 

JUN 1 5 1399 

SAN FRANCISCO 
PUBLIC LIBRARY 



City and County of San Francisco 



Printed at 4:2' PM on &1W 




City and County of £an Francisco 

Meeting Minutes 
.Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B. 

Goodlett Place 

San Francisco, CA 

94102^689 



Wednesday, June 09, 1999 



10:00 AM 
Regular Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 

The meeting convened at 10:08 a.m. 

REGULAR AGENDA 



DOCUMENTS DEPT. 

JUN 1 6 ISC9 

SAN FRANCISCO 
PUBLIC LIBRARY 



990910 [Laguna Honda General Obligation Bond Debt] 

Resolution determining and declaring that public interest and necessity demand the acquisition, construction 
and/or reconstruction by the City and County of San Francisco of a health care and assisted living or other type 
of continuing care facility or facilities to replace Laguna Honda Hospital, and that the estimated cost of 
$299,000,000 for such municipal improvements is and will be too great to be paid out of the ordinary annual 
income and revenue of the City and County and will require lease financing and/or the incurring of bonded 
debt and/or other evidences of indebtedness by or for the City and County. (Department of Public Health) 
5/5/99, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 6/9/1999. 
6/2/99, SUBSTITUTED 

6/2/99, ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose. Budget Analyst; Louise Renne. City Attorney: Dr. Mitchell 
Katz, Director, Health Department; Lee Ann Monfredini, President Health Commission; Roma Guy, Vice 
President, Health Commission; Tony Irons, City Architect; Monique Mover, Director Public Finance, Mayor's 
Office; Supervisor Yee; Supervisor Ammiano; Ted Lakey; Deputy City Attorney; Joe Grubb, Executive 
Director, Rent Board; Supervisor Bierman. In Support Susan Leal, Tax Collector/Treasurer; Veneracion 
Zamora, Commission on Aging; Andy Sekara; Charles Levinson; Fred Hobson; Richard Ow; Kay Bromley; 
Jean McClatchy; Sonny Quiniguini; Gill Thornally; Gabriel Medina, President, S.F. Young Democratic Club; 
Ivana Kirola; Bill Price, Senior Action Network; M. Ward; Karen Licavoli, S.F. Tobacco Free Coalition; 
Stella Ta, Chinese Progressive Association; Lori Lacewell, Columbia Park Boys and Girls Club; Katan. 
Steven, Joseph, South of Market Council. Tobacco Free Project; Vivian (youth), CETA Program; Margaret 
Tsai; Besty Cordoba; Lisa Manning; Adrianna Smith; James; David McGuire; Tamika Alford, Homeless 
Prenatal Program; Gerald De Ryan; Chris Daley. Opposed: Lloyd Schloegel. Neither: Doug Comstock; 
Father John Hermanez. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of Sam Francisco 



Primed at 11:22 AM on 6/11/99 



Finance and Labor Committee Meeting Minutes June 9, 1 999 



990921 [Bond Special Election) 

Ordinance calling and providing for a special election to be held in the City and County of San Francisco on 
Tuesday, November 2, 1999, for the purpose of submitting to the voters a proposition to incur bonded debt 
and/or other evidences of indebtedness and/or undertake lease financing by or for the City and County in the 
principal amount of $299,000,000 for the acquisition, improvement, construction and/or reconstruction of a 
health care, assisted living and/or other type of continuing care facility or facilities to replace Laguna Honda 
Hospital; providing for the use of available tobacco settlement revenues and for the use of State and/or Federal 
grants or funds received by the City and County that are required to fund such proposed project; finding that 
the estimated cost of such proposed project is and will be too great to be paid out of the ordinary annual 
income and revenue of the City and County and will require expenditures greater than the amount allowed 
therefor by the annual tax levy; reciting the estimated cost of such proposed project; fixing the date of election 
and the manner of holding such election and procedure for voting for or against the proposition; fixing the 
annual rate of interest on such lease financing, bonded debt and/or other evidences of indebtedness; providing 
for the levy and collection of taxes to pay both principal and interest of such bonded debt and/or other 
evidences of indebtedness; prescribing notice to be given of such election; establishing the election precincts, 
voting places and officers for the election; waiving the word limitation on ballot propositions imposed by San 
Francisco Municipal Elections Code Section 510; and acknowledging receipt of findings by the City and 
County Planning Department. (Department of Public Health) 

(Substituted by the City Attorney 6/2/99 bearing new title; Fiscal impact; Companion measure to File 990910.) 
5/5/99, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 6/9/1999. 
6/2/99, SUBSTITUTED. 

6/2/99, ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Louise 
Renne, City Attorney; Dr. Mitchell Katz, Director, Health Department; Lee Ann Monfredini, President Health 
Commission; Roma Guy, Vice President, Health Commission; Tony Irons, City Architect; Monique Mover, 
Director Public Finance, Mayor's Office; Supervisor Yee; Supervisor Ammiano; Ted Lakey; Deputy City 
Attorney; Joe Grubb, Executive Director, Rent Board; Supervisor Bierman. In Support: Susan Leal, Tax 
Collector/Treasurer; Veneracion Zamora, Commission on Aging; Andy Sekara; Charles Levinson; Fred 
Hobson; Richard Ow; Kay Bromley; Jean McClatchy; Sonny Quiniguini; Gill Thornally; Gabriel Medina, 
President, S.F. Young Democratic Club; Ivana Kirola; Bill Price, Senior Action Network; M. Ward; Karen 
Licavoli, S.F. Tobacco Free Coalition; Stella Ta, Chinese. Progressive Association; Lori Lacewell, Columbia 
Park Boys and Girls Club; Katan, Steven, Joseph, South of Market Council, Tobacco Free Project; Vivian 
(youth), CETA Program; Margaret Tsai; Besty Cordoba; Lisa Manning; Adrianna Smith; James; David 
McGuire; Tamika Alford, Homeless Prenatal Program; Gerald De Ryan; Chris Daley. Opposed: Lloyd 
Schloegel. Neither: Doug Comstock; Father John Hermanez. Amended on page 2, line 21 by deleting 
"intends to" and inserting "will". 
AMENDED. 

RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991 1 1 1 [Tobacco Settlement Funds | 

Supervisors Yee, Ammiano, Bierman 

Resolution supporting funding for tobacco education, prevention and control services and urging that $ 1 
million per year of tobacco settlement funds be dedicated to tobacco education, prevention and control efforts. 
6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Yee; Supervisor Bierman; 
Supervisor Ammiano. Supervisor Bierman added as cosponsor. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 2 Printed at 1 1:22 AM on 6/1 1/99 



Finance and Labor Committee 



Meeting Minutes 



June 9, 1999 



991087 [Interim Annual Appropriation Ordinance, Fiscal Year 1999-2000] 
Mayor 

Interim Annual Appropriation Ordinance appropriating all estimated receipts and all estimated expenditures 
for the City and County of San Francisco for fiscal year ending June 30, 2000. 

(Fiscal impact; Companion measure to File 991088.) 
6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Yee; Mathew Hymel, Mayor's 
Office; Bill Lee, City Administrator; Harry Parker, Fine Arts Museum; Lawana Preston, Local 790; 
Supervisor Ammiano; Supervisor Bierman. Recommended with Interim Budget Exceptions adopted as 
outlined in the 6/4/99 Budget Analyst Report in file, however, the Committee approved the 9 5 positions for the 
Fine Arts Museum for class 8226 Museum Guard. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991088 [Interim Annual Salary Ordinance, 1999-2000) 
Mayor 

Interim Annual Salary Ordinance enumerating positions in the annual budget and appropriation ordinance for 
the fiscal year ending June 30, 2000. 

(Fiscal impact; Companion measure to File 991087.) 
6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Yee; Mathew Hymel, Mayor's 
Office; Bill Lee, City Administrator; Harry Parker, Fine Arts Museum; Lawana Preston, Local 790; 
Supervisor Ammiano; Supervisor Bierman. Recommended with Interim Budget Exceptions adopted as 
outlined in the 6/4/99 Budget Analyst Report in file, however, the Committee approved the 9.5 positions for the 
Fine Arts Museum for class 8226 Museum Guard. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



990690 [City Hall License, Filming and Tour Fees] 
Supervisors Kaufman, Ammiano 

Ordinance amending Administrative Code by adding Section 4.1-2 to authorize the Department of 
Administrative Services to charge fees for short term licenses, filming activities and tours in City Hall. 

(Adds Section 4.1-2.) 

4/12/99, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 5/12/1999. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Allison Krumhein, Supervisor Kaufman's Aide. 
Steve Nelson, Director, Administrative Services; Supervisor Ammiano. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 11:22 AM on 6/1 1 /99 



Finance and Labor Committee 



Meeting Minutes 



June 9, 1999 



990916 (Employee Health Coverage) 

Ordinance amending Administrative Code Section 16.157, approving Health Service System plans and rates of 
contribution as adopted by the Health Service Board. (Department of Human Resources) 
5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

5/26/99, CONTINUED TO CALL OF THE CHAIR. Heard in Committee. Speakers: Supervisor Ammiano; Harvey Rose, Budget 
Analyst; Ann Summercamp, Deputy Director, Health Service System; John Madden, Assistant Controller, Jean Frasier, Deputy City 
Attorney; Supervisor Yee; Mathew Hymel, Mayor's Office, Bart Duncan, Deputy City Attorney Opposed: Leonard Lundgren, 
President, Retired Teachers Association; Kay Walker, SEIU PAC; Lane De Lara, Ann Tobian, Nancy Gin, 2nd Vice President, CCSF 
Retirees Association; Tony Sacco, Retired Firemen and Widows Association; Bernard Crotty; Leo Martinez, Board of Directors, Retired 
Firemen and Widows Association, Robert Pardina, John LeHane, Police Association, Jean Thomas, Earl Gilman, Grady Shawn Allison; 
Diane Hermann, Executive Board, Retired Employees. Neither: Gerald De Ryan, Labor Council, David Novogrodsky, Local 21 

Heard in Committee. Speakers: Ed Harrington, Controller; Supervisor Yee; Ann Summercamp, Deputy 
Director, Health Service System; Bart Duncan, Deputy City Attorney; Supervisor Ammiano. Opposed: Diane' 
Hermann; Kay Walker; Bernard Crotty; Nancy Gin Neither: Gerald De Ryan; David Novogrodsky; Lawana 
Preston, Local 790; David Glenen, nurse. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991054 [Budget Workshop-Municipal Railway) 

Budget Workshop to review in depth the budget for the Municipal Railway. (Clerk of the Board) 

3/9/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Michael Burns, General Manager, Municipal Railway; Supervisor Ammiano. 

FILED by the following vote: 

Ayes: 2 - Bierman, Ammiano 

Absent: 1 - Yee 



ADJOURNMENT 

Meeting adjourned at 1:34 p.m 



City and County of San Francisco 



Printed at 11:2) Of on 6/11/99 



V.S5t 



f/ff 




Public Library, Gov't Information Ctr.. 5 th Fir. 
Attn: Susan Horn, Dept. 41 



CITY AND COUNTY (iwftll$L)l) OF SAN FRANCISO^OCUMENTS DEPT. 

JUN 8 1999 
BOARD OF SUPERVISORS 

* SAN FRANCISCO 

BUDGET ANALYST PUBLIC LIBRARY 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



June 4, 1999 
TO: ^Finance and Labor Committee 

FROM: ..Budget Analyst 
SUBJECT: fJune 9, 199j £Finance and Labor Committee Meeting 

Items 1 and 2 - Files 99-0910 and 99-0921 

Department: Department of Public Health (DPH) 

Items: Item 1 - File 99-0910: Resolution determining and 

declaring that the public interest and necessity demand 
the acquisition, construction and/or reconstruction by 
the City and County of San Francisco of a health care, 
assisted living and/or other type of continuing care 
facility or facilities to replace Laguna Honda Hospital 
and that the estimated cost of $299,000,000 for such 
municipal improvements is and will be too great to be 
paid out of the ordinary annual income and revenue of 
the City and County and will require lease financing 
and/or the incurring of General Obligation and/or other 
bonded debt and/or other evidences of indebtedness. 

Item 2 - File 99-0921: Ordinance calling and providing 
for a Special Election to be held in the City and County 
of San Francisco on Tuesday, November 2, 1999 for the 
purpose of submitting to the voters of the City and 
County of San Francisco a proposition to incur General 
Obligation bonded debt and/or other evidences of 
indebtedness and/or undertake lease financing by or for 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

the City and County in the principal amount of 
$299,000,000 for the acquisition, improvement, 
construction and/or reconstruction of a health care, 
assisted living and/or other type of continuing care 
facility or facilities to replace Laguna Honda Hospital; 
providing for the use of a portion of the Tobacco 
Settlement Revenues and for the use of State and/or 
Federal funds received by the City and County that are 
required to fund such proposed project; finding that the 
estimated cost of such proposed project is and will be too 
great to be paid out of the ordinary annual income and 
revenue of the City and County and will require 
expenditures greater than the amount allowed by the 
annual tax levy; reciting the estimated cost of such 
proposed project; fixing the date of election and the 
manner of holding such election and the procedure for 
voting for or against the proposition; fixing the 
maximum rate of interest on such lease financing, 
bonded debt and/or other evidences of indebtedness; 
providing for the levy and collection of taxes to pay both 
principal and interest; establishing the election 
precincts, voting places and officers for the election; 
waiving the word limitation on ballot propositions 
imposed by San Francisco Municipal Elections Code 
Section 510; and acknowledging receipt of findings by 
the City and County Planning Department. 

Description: On April 20, 1999 a report prepared by the Laguna 

Honda Replacement Planning Committee (LHRPC) was 
presented to the Health Commission. The LHRPC is 
comprised of 26 City officials and private citizens and 
co-Chaired by the City Attorney and the Director of 
Public Health. The City Attorney was appointed to lead 
the planning effort for the Laguna Honda Replacement 
Hospital by the Mayor. As Co-Chairs, the City Attorney 
and the Director of Public Health selected members of 
the LHRPC. The LHRPC has recommended a 
demolition of the current Laguna Honda main hospital 
wards and demolition of Clarendon Hall to provide a 
facility that will accommodate a total of 1.200 beds and 
the construction of a new 140-unit assisted living 
facility (hereinafter called the "replacement project"). 

The LHRPC's report also recommends that Tobacco 
Settlement proceeds due to the City, which the LHRPC 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

2 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 



estimates will range from $313,400,000 to $442,100,000 
over the next 25 years, be used as a source of funds to 
partially offset the cost to property owners for 
repayment of the General Obligation Bonds. 

The proposed resolution (Item 1, File 99-0910) would 
determine and declare that the public interest and 
necessity demand the acquisition, construction and/or 
reconstruction of a health care, assisted living and/or 
other type of continuing care facility or facilities to 
replace Laguna Honda Hospital and that the estimated 
cost of $299,000,000 to partially fund such municipal 
improvements is and will be too great to be paid out of 
the ordinary annual income and revenue of the City and 
County and will require lease financing and/or the 
incurring of bonded debt and/or other evidences of 
indebtedness. 

The proposed ordinance (Item 2, File 99-0921) would 
authorize submission of a Proposition to the electorate 
for purposes of undertaking or incurring lease financing, 
General Obligation bonded debt, and/or other evidence 
of indebtedness in the amount of $299,000,000 and the 
use of a portion of the Tobacco Settlement Revenues and 
State and/or Federal funds to fund the Laguna Honda 
Hospital Replacement Project. 

Ms. Monique Moyer, Mayor's Director of Economic 
Development and Public Finance, advises that the 
estimated total project costs for the Laguna Honda 
Hospital Replacement Project are $401,000,000. 
According to Ms. Moyer, the anticipated sources of 
funding for the total $401,000,000 project would be as 
follows: 

General Obligation Bond, lease financing, 

or other types of indebtedness $299,000,000 

Interest Earned on General Obligation Bonds, 

lease financing, or other types of indebtedness 21,703,283 
Tobacco Settlement Revenues 

(including interest earnings) 80.296,717 

$401,000,000 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

3 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

Attachment I is a memo from Ms. Mover which provides 
more detailed project and financing information for the 
project. 

Budget: A summary budget for the $401,000,000 total project 

costs for the Laguna Honda Hospital Replacement 
Project, provided by the LHRPC. is shown in 
Attachment II. 

Comments: 1. The City Charter provides for a legal debt limit of 3 

percent of assessed real and personal property value. 
The Mayor's Office of Public Finance has calculated the 
City's Debt Limit Ratio as follows: 

Total Debt Limit at 6/30/99 SI. 920.239,059 
Outstanding General Obligation Bonds 

at 6/30/99 894.105.000 

Remaining General Obligation Capacity $1,026,134,059 

If the subject bond issue of $299,000,000 proposed for 
the November 1999 ballot were to be approved by the 
voters, the remaining General Obligation bonding 
capacity would be $727,134,059. However, the amount 
of debt that could be issued in any given year is partly a 
function of the level of payments on existing debt, which 
fluctuates as older bond issues are retired and new 
bonds are issued. 

2. The proposed ordinance (Item 2. File 99-0921) 
provides that the $299,000,000 in lease financing. 
General Obligation bonded debt, and/or other evidences 
of indebtedness used to finance the project shall bear 
interest at a rate not to exceed 12 percent per annum. 
According to Ms. Mover, assuming the debt is issued in 
an interest environment which reflects norms for the 
past ten years, the Laguna Honda Hospital debt would 
bear a true interest cost of 6 percent. Upon issuance of 
the entire $299,000,000. average annual debt service 
would be approximately $26,476,300 and total debt 
service would be $529,526,000 for the proposed 20-year 
term. 

3. The LHRPC estimates that Tobacco Settlement 
revenues to be paid to the City will range from 
$313,400,000 to $442,100,000 over the next 25 years. 
According to the proposed ordinance (Item 2. File 99- 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

0921), such Tobacco Settlement proceeds would be used 
as a source of funds to partially offset the cost to 
property owners for repayment of General Obligation 
Bonds used to finance the project, less $1,000,000 each 
year which would be used to fund tobacco education, 
prevention, and control purposes, subject to annual 
appropriation approval by the Board of Supervisors. 

As noted above, Ms. Moyer estimates that total debt 
service for $299,000,000 in General Obligation Bonds 
would be approximately $529,526,000 over 20 years and 
that Tobacco Settlement proceeds would pay for 
$214,715,000 or 40.5 percent of the total debt service. 

4. According to Mr. John Madden of the Controller's 
Office, if $299,000,000 in Laguna Honda General 
Obligation Bonds were issued and no Tobacco 
Settlement revenues were applied to offset the cost to 
property owners, the Property Tax rate would increase 
by approximately $.0412 per $100 of assessed value 
beginning in FY 2000-01. At this rate, the owner of a 
single family residence assessed at $400,000 would pa% r 
$162.03 in additional annual Property Taxes over the 
20-year term. 

5. The LHRPC reports that in addition to the Tobacco 
Settlement Revenues, State and Federal funding is 
being sought by DPH to pay for a portion of the 
replacement project costs. However, at this time DPH 
cannot state definitively whether the City will or will 
not receive additional funds from State and Federal 
sources. 

6. The Budget Analyst notes that the final calendar for 
the June 9, 1999 meeting of the Finance and Labor 
Committee states that authority to issue debt in the 
amount of $437,045,000 would be requested from the 
electorate instead of $299,000,000. This report is based 
upon legislation which was substituted by DPH which 
requests authority to issue debt in the amount of 
$299,000,000. 

Recommendation: Approval of the proposed resolution (File 99-0910) and 
ordinance (File 99-0921) is a policy matter for the Board 
of Supervisors. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

5 



Office of the Mayor 
san francisco 




Attachment I 
Pape I of 6 

Willie Lewis Brown, jr. 



May 28, 1999 

TO: Monique De Jong 

From: Monique Moyer 



RE: 



</$ 



Plan of Finance 

Laguna Honda Hospital Replacement Project 



Plan of Finance 

As you know, the primary components of the Laguna Honda Hospital Replacement Project (the 
"Project") are as follows: 



temporary power plant; 

1,200 bed skilled nursing facility including a center for adult-day health care, a senior 

nutrition center, an employee child-care center, a swimming pool and a horticulture 

unit; 

demolition of Clarendon Hall and related site work; 

improvements to the Administrative Wing of the existing hospital; 

demolition of the remaining hospital wings and related site work; 

construction of a surface parking lot; and 

$15 million in "seed" money to construct approximately 140 assisted living units. 



The Plan of Finance to construct the $401 million Project rehes on the issuance of S299 million 
of general obligation bonds (and interest earnings thereon) and approximately $80 million of 
tobacco settlement moneys to be applied on a "pay-as-you-go" basis. The proposed distribution 
of GO bond and tobacco proceeds (exclusive of proceeds to pay financing costs) is summarized 
in Attachment 1 hereto. 

Pursuant to the Plan of Finance, all of the bonds are expected to be issued in the first year of the 
Project in order to meet contract certification requirements in accordance with the City's Charter. 
As such, the bond proceeds will be available to certify the contracts for (a) architectural and 
engineering services for all elements of the Project, (b) construction management services for all 
facets of the Project, (c) site preparation work for the skilled nursing facility including the base 
structure; and (d) construction of a temporary power plant. As indicated in Attachment 1, the 
bond proceeds (including interest earnings thereon) will fund approximately 95% of the costs to 
complete components 1 and 2 listed above. 

Assuming an interest rate of 6%, debt service will average approximately $26 million per year. 
Column 2 ("Debt Service Due") of Attachment 2 hereto provides the preliminary' debt service 
schedule for the GO bond issuance. 



1 DR. CARLTON B. GOODLETT PLACE. ROOM 200 SAN FRANCISCO. CALIFORNIA 94102 

(415) SS4.6141 

RECYCLED PAPER 



Attachment I 
Page 2 of 6 



Use of the Tobacco Settlement Moneys 

In accordance with the 1998 Master Settlement Agreement ("Master Agreement") between 
certain "settling states" and "participating manufacturers", the City will receive annual 
distributions of tobacco settlement moneys in perpetuity. Pursuant to the Plan of Finance and the 
proposed Ordinance, tobacco settlement moneys received by the City during the life of any bonds 
will be used as follows: 

(1) $1 million per year will be applied towards tobacco education, prevention and control 
purposes; 

(2) up to $100 million will be applied on a "pay-as-you-go" basis towards construction of 
the Project; and 

(3) all remaining tobacco settlement moneys will be applied against debt service on the 
bonds. 

The tobacco settlement requires participating tobacco manufacturers to pay a settlement fee on 
each package of cigarettes sold in the United States. Therefore, payments from the tobacco 
settlement rely on the amount of cigarettes sold domestically in each calendar year. Pursuant to 
the Master Agreement, Price Waterhouse has been retained as the annual auditor and Citibank 
has been retained as the escrow agent. The annual amount of settlement money owed from the 
tobacco companies will be audited and billed in accordance with the agreement and such 
payments will be made to Citibank by each April 15 th . The settlement money will then be 
transferred to the State of California and distributed to the 58 counties and 4 cities which 
participated in the lawsuit. Pursuant to a Memorandum of Understanding between the State and 
the local jurisdictions, the amount that San Francisco will receive in part depends on our 
population relative to that of the other 57 counties. 

Based on actual cigarette sales at the time the Master Agreement was negotiated, San Francisco 
is expected to receive approximately $585 million of tobacco settlement money over the next 25 
years. The amount owed each year (while payable based on the actual amount of cigarettes sold) 
is increased annually by a CPI adjustment of not less than 3% calculated on the amount of the 
prior year payment. The amount payable to the settling states under the Master Agreement is 
then reduced by any reduction in actual cigarette sales and any shortfall in collections. Payments 
to San Francisco are subject to these same inflation, sales and monetary collection adjustments. 
However, pursuant to the California Memorandum of Understanding, a further adjustment may 
be made as a result of population shifts within the State of California. Thus, the City's share of 
such money relies primarily on (a) the amount of cigarettes sold nationally each year, (b) the 
absence of bankruptcy protection on the part of any participating manufacturer, and (c) San 
Francisco's census. 

Tobacco industry experts predict that cigarette sales in the U.S. will continue to decline. The 
experts have created a rather complex formula as to the expected amount of decline in each of the 
next 25 years which has been incorporated into the Plan of Finance. In the early years of the 
settlement agreement, the tobacco experts anticipate that the reduction in tobacco sales will 
outpace any growth in inflation. Over time, however, the experts anticipate that demand 



Attachment I 
Page 3 of 6 



reductions will not exceed 3% per year and thus, any loss in sales revenue under the Master 
Agreement will be offset by the minimum CPI adjustment of 3%. These calculations are 
incorporated into the Plan of Finance as a means for assessing the City's receipt of tobacco 
collections as demand declines. In order to assess the City's other risks (such as a bankruptcy 
filing by one of the Big 4 manufacturers or a reduction in the City's census relative to the other 
counties), the Plan of Finance assumes that an additional 25% of the tobacco revenues will be 
lost and never received by the City. While 25% is a fairly sizable amount (and we believe, a very 
conservative amount), credit analysts and investment bankers within the municipal bond industry 
believe it would be imprudent at this time to assume that the City would receive in excess of 75% 
of the anticipated collections. As the tobacco industry matures and payments under the Master 
Agreement create an historical trend line, it is conceivable that municipal market analysts will 
become comfortable in assuming that more of the money is actually received. Pursuant to the 
proposed Ordinance, any increase in tobacco receipts would be required to be used to pay debt 
service and offset any property' taxes related to such debt service. 

The Master Agreement and the California Memorandum of Understanding are silent as to how 
the participating entities should or can expend their share of the settlement The proposed 
Ordinance will confirm the Board of Supervisors' and the Mayor's intent to apply the tobacco 
receipts to rebuilding Laguna Honda Hospital. As part of the Ordinance, however, $1 million per 
year of tobacco collections would be set aside for tobacco education, prevention and control 
purposes commencing with the first year of collections. 

In the first 5 years of the Plan of Finance, approximately $80 million in tobacco receipts are 
anticipated to be collected (excluding the SI million per year educational set-aside) to fund 
completion of the Project. Thereafter, in years 6 and 7, a portion of the tobacco collections not 
used for tobacco education or Project completion will be available to offset debt service. 
Following Project completion in year 7, all of the tobacco collections (with the exception of $1 
million per year for education) will be used to offset debt service. The annual amount of tobacco 
collections used to offset debt service is shown in Column 3 ("Use of Tobacco Receipts") of 
Attachment 2. Once the debt is fully retired, the tobacco receipts (which continue in perpetuity) 
would be available for any lawful purpose. Note that Column 3 only refers to tobacco receipts as 
they are applied to offset debt service. 

While the City expects to receive a significant amount of tobacco settlement money per year, 
such money is not anticipated to be enough to completely offset the annual debt service on the 
bonds. As such, a portion of the debt service will be required to be paid from property taxes. 
The amount required in each year (assuming a 6% interest rate on the bonds) is shown in Column 
4 ("Ad Valorem Taxes Needed") of Attachment 2. 

Other Aspects of the Ordinance 

The proposed ballot measure incorporates ways to reduce the amount of GO bonds issued if (a) 
additional grants or funds are available or (b) tobacco-backed bonds can be issued. In the event 
that the City is able to receive a grant specifically for the Project from the State or federal 
governments, then the amount of GO bonds that could be issued would be reduced on a pro rata 
basis. In other words, if the City received an upfront grant of S10 million, the amount of GO 



Attachment I 
Page 4 of 6 



bonds would be reduced by SI million less any sunk costs to issue the remainder of the bonds. 
If the City receives State or federal funds on a reimbursement basis (such as an annual Medicare 
payment), such money would not reduce the amount of GO bonds issued but would be required 
to offset debt service resulting in lower property tax assessments. 

In addition, the proposed ballot measure would allow the City to use either lease revenue bonds 
or a related debt instrument to leverage the tobacco settlement moneys in place of the GO bonds. 
Tobacco settlement moneys have never been used to securitize municipal debt instruments. 
Methods to leverage such moneys are in the developmental stages and will likely mature over 
time. Voter approval of this measure would allow the City to substitute a tobacco-backed debt 
instrument or lease revenue bonds in place of GO bonds in the event that such instruments 
eventually become viable in the tax-exempt bond market 

Finally, the proposed legislation would allow the City to issue the GO bonds in a short-term 
interest rate mode (such as commercial paper) during construction in order to reduce debt service 
in the early years. While such scenarios have been modeled, the Plan of Finance envisions the 
issuance of fixed rate bonds. Before the City could issue GO bonds in a short-term mode, an 
extensive analysis of short-term and long-term rates would need to be prepared. Since the debt is 
not expected to be issued for quite some time, any analysis prepared today would not be very 
reliable. However, I recommend that such analysis be prepared at the appropriate time and if 
such analysis shows that long-term rates are expected to remain low during the construction 
period, then the GO bonds should be issued in a short-term mode. If such analysis shows that 
long-term rates are expected to rise significantly during construction, then the GO bonds should 
be issued in a fixed-rate mode in order to lock in low rates. These are considerations that the 
Board of Supervisors would approve by resolution prior to issuance of the bonds. 

This is a rather complex Project and detailed Plan of Finance. In designing the Plan of Finance, 
the Mayor's Office of Public Finance and the City Attorney's Office have relied heavily on the 
pro bono services of Public Financial Management, Inc. (one of the highest ranked financial 
advisory firms in the country), Kitahata & Associates (a locally-owned financial advisory firm), 
Goldman Sachs & Co. (a Wall Street investment bank), The Law Offices of Pamela S. Jue, and 
The Law Offices of Leslie M. Lava (both locally-owned counsel firms) and Brown & Wood, LLP 
and Orrick Herrington & Sutcliffe, LLP (two nationally ranked bond counsel firms). 

In reviewing the tobacco settlement moneys and related risks to its receipt, the Offices of the 
Mayor and City Attorney have met extensively with Salomon Smith Barney, Morgan Stanley- 
Dean Witter, Lehman Brothers and Goldman Sachs & Co. We believe the Plan of Finance takes 
a conservative view of the anticipated tobacco collections and therefore is financially sound 
based on all that we know today. I hope that you will concur with our assessment 

If I can be of any assistance to you in your review, please do not hesitate to call me at 554-4862 
or Sarah Hollenbeck at 554-6240 or Michelle Sexton at 554-4708. For more information 
regarding the project itself, please contact Tangerine Brigham at DPH at 554-2631 or Tony Irons, 
City Architect at 554-4555. Thank you. 



Attachment I 
Paee 5 of 6 



Laguna Honda Hospital Replacement Project 

Summary of Encumbrance of Project Contracts 

Allocation of General Obligation Bond Proceeds & Tobacco Settlement Money 



Project 
Phase 




Project 

Encumbrance 

Amount 


GO Bond 

and Interest 

Earnings* 


Tobacco & 
Interest 
Earnings 


A/E Services 
C/M Services 
Temporary Power 
Ongoing 


subtotal: 
subtotal 

subtotal: 

lab Admin Bldg. 
ct parking 

subtotal: 


37,000,000 

15,000,000 

5.000.000 

6.000.000 

63,000,000 

64,000,000 

3000, OX 

67,000,000 

42,000.000 

151,000,000 

6.000.000 

199,000,000 

47,000,000 
15.000.000 
10.000.000 
72.000.000 


37 000.000 

15.000,000 

5,000,000 

6.000.000 

63.000.000 

64,000.000 

3,000.000 

57.000,000 

42,000.000 

142,703,283 

6.000.000 

190.703.283 


- 


Site Work & Structure 
Ongoing 


- 


Exterior, SNF 
Interior, SNF 
Ongoing 


8.296,717 


Demo Clarendon, Rer 
Demo Wings; Constru 
Assisted Living Match 
Ongoing 


8,296,717 

47,000.000 
15,000,000 
10,000.000 
72 000.000 



Grand Total: 



S 401.000,000 



S 320.703,283 



80.296,717 



'Assumes $27 million in interest earnings from bond funds 



10 



Attachment I 
Paee 6 of 6 






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11 



Attachment II 
Page 1 of 2 



LACUNA HONDA HOSPITAL REPLACEMENT BOND PROGRAM 

PROPOSED BOND PROGRAM BUDGET 

1 . CONSTRUCTION, PURCHASE & INSTALLATION 

Includes construction contracts, demolition of existing structures, 
hazardous materials abatement & removal, site-work, fixed 
equipment, retrofits for temporary relocation, telecommunications 
infrastructure, temporary utilities, contingencies for change orders. 
Art Enrichment, escalation to the midpoint of construction. 



S 309.259,000 



CLIENT DEPARTMENT 

Includes hospital staff, consultants, community outreach, and 
operating expenses added to the normal day to day operations as a 
result of this construction project & its associated relocations only. 
(2 FTE @ S80/hr. avg. for 8 yrs. + 2% per/yr.) 

PROJECT MANAGEMENT & CONTROL 
Responsibilities include management of enure Bond Program, as well 
as individual project scopes, budgets & schedules from start-up 
through post-construction, monitoring of project funds, management 
& procurement of design & construction contracts, processing and 
payment of consulting & construction contracts per State and local 
regulations, reporting Sc monitoring bond arbitrage and financing 
costs, reporting to client department & others, bond sale requests and 
appropriations, incorporation of HRC requirements (MBE'WBE 
goals), scheduling & management of agency approvals, public 
information publications, community outreach. 
(5 FTE @ $80/hr. avg. for 8 yrs. + 2% per/yr.) 

CITY ADMINISTRATIVE SERVICES 

Includes project-specific administrative functions from City 

Administrator, Purchaser, Controller. City Anorney, and Mayor's 

Office of Financial Management, Real Estate Department. 

City Administrator 

Purchaser 

Controller 

Real Estate Department 

Mayor's Office 

($150,000 yr. For 8 yrs.) 

REGULATORY AGENCY APPROVALS & FEES 

Includes OSHPD & DBI building permit fees, demolition permits. 

City Planning & Environmental Review fees, utility fees, such as 

PG&E, Landmarks Board, Civic Design Review. 

(3.4% of $309,259,000) 

BASIC ARCHITECTURAL/ENGINEERING SERVICES 
Includes basic A/E (schematic design, design development and 
construction administration services) for each of the four distinct 
construction projects, in the disciplines of architecture, structural, 
mechanical, electrical engineering only. 
(8% of $309,259,000) 



3.088.000 



7,721,000 



1,200,000 



10,515.000 



24,740.000 



12 



Attachment II 
Page 2 of 2 



7. ADDITIONAL A/E SERVICES 12,370.000 
Includes demolition specifications, environmental review, landscape 

architecture, cost estimating, scheduling, post construction services, 
quality assurance reviews, peer reviews, value engineering, interior 
design, renderings, models, coordination of moves, medical 
equipment consultants, operations planning, disabled access reviews, 
signage, civil engineering, hazardous materials specifications, 
equipment planning, telecom design, traffic engineering developing 
architectural & engineering standards, printing & reproducibles. 
(4% of $309,259,000) 

8. CONSTRUCTION MONITORING 15,463,000 
Includes construction management monitoring services, including 

cost and schedule control, change orders, quality control, prevailing 

wage monitoring, materials testing & inspection, hazardous materials 

oversight. 

(5% of $309259,000) 

9. OWNER FURNISHED DATA 500,000 
Existing construction & materials analyses supplied by the owner to 

the design entities, including programming institutional Master Plan, 
structural analysis, as builds, topographic surveys, pre-balance 
reports, hazardous materials assessments & surveys. 
(Lump Sum Estimate) 

10. OTHER PROGRAM COSTS 1,718,000 
Allowance for relocation for Admin. Building work and moving 

patients to new facility. 

($300 per patient & $20 SF Admin.) 

11. ASSISTED LIVING 15,000,000 
City match to develop assisted living units in Claredon Hall site. 

(Lump Sum Cost) 

TOTAL PROGRAM BUDGET 401 ,574,000 * 

*Rounded to $401,000,000 



13 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

Item 3 - File 99-1111 



Item: 



Resolution supporting funding for tobacco education, 
prevention, and control services and urging that 
$1,000,000 per year of Tobacco Settlement funds be 
dedicated to tobacco education, prevention and 
control efforts. 



Description: 



As a result of lawsuits filed by the California 
Attorney General, City and County of San Francisco, 
and other California cities and counties, a settlement 
agreement was reached in November 1998 between 
the State Attorney General and the four major 
tobacco manufacturers, including Philip Morris, Inc. 
R.J. Reynolds Tobacco Company, Brown & 
Williamson Tobacco Corporation and Lorillard 
Tobacco Company which includes the payment of 
approximately $25 bilhon to the State of California 
over the next 25 years. In August of 1998, the 
California Attorney General entered into a 
Memorandum of Understanding (MOU) with the 
applicable California cities and counties to distribute 
one-half of any settlement from these lawsuits to 
those California cities and counties. Under the MOU, 
it is anticipated that the City and County of San 
Francisco will receive between $313,400,000 to 
$442,100,000 over 25 years, subject to certain 
adjustments. 

Approval of the proposed resolution would indicate 
that the Board of Supervisors supports funding for 
tobacco education, prevention and control services 
and would urge that $1,000,000 per year of the 
aforementioned Tobacco Settlement funds be 
dedicated to such purposes. 

Items 1 and 2 (Files 99-0910 and 99-0921) of this 
report to the Finance and Labor Committee would 
authorize submission of a Proposition to the 
electorate for purposes of undertaking or incurring 
lease financing, General Obligation bonded debt, 
and/or other evidence of indebtedness and provide 
that the Tobacco Settlement funds would be used to 
pay a portion of the project and debt repayment costs 
for the Laguna Honda Hospital Replacement Project. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

14 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

As noted above, this subject resolution would support 
the use of $1,000,000 annually from such Tobacco 
Settlement proceeds for tobacco education, 
prevention and control services as proposed in this 
subject resolution. 

Comment: The expenditure of the Tobacco Settlement proceeds 

will be subject to annual appropriation approval by 
the Board of Supervisors. 

Recommendation: Approval of the proposed resolution is a policy matter 
for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

15 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

Items 4 and 5 - Files 99-1087 and 99-1088 

1. The proposed legislation would approve the Interim Annual Appropriation 
Ordinance (File 99-1087), the Interim Annual Salary Ordinance (File 99-1088). 

2. The annual budget process for the City and County requires that the Board of 
Supervisors approve an Interim Annual Appropriation Ordinance and an Interim 
Annual Salary Ordinance for Fiscal Year 1999-2000 on or before June 30, 1999. 
The purpose of these interim ordinances is to provide position and expenditure 
authorization for the various departments of the City and County during the time 
that the Finance and Labor Committee of the Board of Supervisors is reviewing the 
Mayor's recommended budget for Fiscal Year 1999-2000. The budget is scheduled to 
be adopted by the Board of Supervisors on July 19, 1999. 

3. The Interim Annual Appropriation Ordinance and Interim Annual Salary 
Ordinance are based on the Fiscal Year 1999-2000 proposed budget 
recommendations of the Mayor. Hence, these ordinances include authorization and 
funding for all programs and program revisions which are included in the Mayor's 
proposed 1999-2000 budget. Each program and program revision will be reviewed 
in detail during the budget hearings and sessions which have been scheduled by the 
Finance and Labor Committee from June 15 through June 24, 1999. 

4. As a general policy, in previous years, the Board of Supervisors has not 
approved new positions and programs during the interim budget period without 
detailed review. This general policy has been implemented by instructing the 
Controller not to certify the availability of funds for new positions, new programs or 
program expansions during the interim budget period between July 1 and July 31. 
If an exception is approved by the Board of Supervisors, new positions can be filled 
effective July 1. Otherwise, new positions will generally not be filled until August 1 
at the earliest. 

5. The Administrative Provisions of the Interim Annual Appropriation 
Ordinance further state that no funds shall be allotted until August 1 for capital 
improvements and equipment. However, leased equipment is not subject to this 
provision. In certain cases, specific exceptions to these general policies have been 
approved by the Board of Supervisors. Exceptions have been based on such factors 
as new positions and programs that produce revenue or prevent major sendee 
deficiencies which would result from dela\ f s in filling new positions or starting new 
programs. Approval of some equipment purchases, for example, could result in cost 
savings. 

6. The Controller has prepared revisions to the Administrative Provisions of the 
Interim Annual Appropriation Ordinance (AAO). These proposed revisions are 
described below: 

Board of Supervisors 
Budget Analyst 

16 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

• Section 7.2 - Previously, Section 7.2 defined equipment as items having a 
value of over $1,000 and a useful life of three years or more. Such 
equipment items must be detailed individually in the budget. The 
proposed Administrative Provisions of the Interim AAO changes the 
minimum equipment value from $1,000 to $5,000. The FY 1999-2000 
Mayor's Recommended Budget reflects this proposed change in the 
definition of equipment as items only with a value of $5,000 or more and a 
useful life of three years or more is budgeted as equipment. All other 
equipment type items, with a value less than $5,000 are not detailed and 
are budgeted under materials and supplies. According to Mr. John 
Madden, Chief Deputy Controller, the benefit of changing the definition of 
the minimum equipment value for budgeting purposes is that technology 
equipment, such as personal computers and related items, cannot be 
easily specified months in advance, as required by the City's annual 
budget process, due to rapid changes in specifications and prices for such 
equipment. Also, personal computers and related items are now 
considered routine and necessary office equipment for almost all 
employees and are therefore more appropriately budgeted under materials 
and supplies. 

If the Board of Supervisors does not approve this proposed amendment to 
the Administrative Provisions of the Interim AAO, according to Mr. 
Madden, all items costing $1,000 or more, with a useful life of three years 
or more, could not be procured from materials and supplies. Therefore, 
according to Mr. Madden, the budget will then have to be amended, with 
specific equipment with a value of between $1,000 and $4,999 submitted 
to the Board of Supervisors for approval for each individual City 
department. 

• Section 9 Interdepartmental Services : two new paragraphs are added. 
The first one allows the Controller to adjust the work order amounts paid 
by individual City departments for the services of another department, as 
long as the total funds provided to the performing department for such 
work order services does not increase unless a supplemental appropriation 
is approved. The second paragraph added to Section 9 allows the 
Controller to review fees or charges authorized for the administration of 
the Computer Store (a pre-approved fist of computer vendors for City 
departments to select from, for the purchase of personal computers and 
related items). Such fees or charges must be authorized by the Board of 
Supervisor. According to Mr. Madden, legislation is now pending before 
the Board of Supervisors to establish such fees or charges. 

• Section 12.8 - Mayor's Reserves : This Administrative Provision was added 
last year to permit the Mayor to create two General Fund Reserves, which 

Board of Supervisors 
Budget Analyst 

17 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

could be released with the approval of the Mayor's Budget Office. The first 
reserve was for one-time Capital Investments in the amount of 
$21,484,400. This reserve represents capital improvement projects that 
are budgeted in various General Fund and General Fund Supported 
Departments. A second reserve established by the Mayor was for a one- 
time Systems Investment reserve in the amount of $8,656,288. According 
to Mr. Madden, this Administrative Provision was found to be 
unnecessary and has therefore been deleted from the AAO. 

7. The proposed Interim Annual Salary Ordinance (ASO) includes amended 
Administrative Provisions which would alter the following Sections: 

• Section 1.3 has been amended to remove references to the employment of 
Legislative Analysts through consideration by the Clerk of the Board of 
Supervisors based on recommendations of the Director of Human 
Resources, the Controller and the Budget Analyst. According to Ms. 
Andrea Gourdine, Director of Human Resources, this provision is no 
longer applicable. 

• Section 1.1B has been amended to enable the Director of Human 
Resources to authorize exempt temporary appointments for Class 1229 
Special Examiner. The Class 1229 Special Examiner is used for Police 
Academy Instructors, many of whom are also employed as San Francisco 
Police Officers. Such positions are now paid without receiving a temporary 
appointment to Class 1229 and therefore receive, in effect, contract 
payments instead of regular salary compensation through the Citj^'s 
payroll system. This change is being made in order to comply with 
Internal Revenue Service regulations. 

• Section 1.3B of the Interim ASO also specifies meal prices for Sheriffs 
Department employees working at San Francisco General Hospital's Jail 
Medical Ward 7D. Presently, prices are $3.31 for breakfast, $4.53 for 
lunch and $6.11 for dinner. The proposed amendment to the Interim ASO 
would replace these prices with a fixed price of $5.09 for all meals. 

8. In past years, the Mayor's recommended Interim Annual Appropriation 
Ordinance and the Interim Annual Salary Ordinance have, in general, been 
routinely approved by the Board of Supervisors, with the exception of new positions 
and new programs, capital improvements and equipment, as noted above. 

9. At the direction of the Finance and Labor Committee and the full Board of 
Supervisors, the Budget Analyst has historically been instructed to analyze the 
Mayor's recommended budget in detail and make recommendations for reducing the 
Mayor's recommended budget only if such recommendations do not result in service 
level reductions. Budget reductions recommended by the Budget Analyst and 

Board of Supervisors 
Budget Analyst 

18 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

approved by the Board, have often been used by the Board of Supervisors as a 
source of funds to: (a) restore items deleted in the Mayor's recommended budget; (b) 
include new items in the budget based on the priorities of the Board of Supervisors; 
and/or (c) increase the General Fund Reserve. In accordance with the Charter, the 
reallocation of any savings realized from budget reductions made by the Board of 
Supervisors can now be made by the Board of Supervisors without appropriation 
approval by the Mayor, in accordance with the priorities of the Board of 
Supervisors. Such amendments would be subject to Mayoral veto. 

10. In accordance with the 1999-2000 Budget Calendar, the Interim Annual 
Appropriation Ordinance and the Interim Annual Salary Ordinance are scheduled 
to be passed on first reading at the June 14, 1999 meeting of the Board of 
Supervisors. Final passage of these ordinances is scheduled for June 21, 1999. 

11. The Budget Analyst has previously been advised by Mr. Burke Delventhal of 
the City Attorney's Office that the Board of Supervisors is required to approve the 
Mayor's recommended Interim Annual Appropriation Ordinance and Interim 
Annual Salary Ordinance (and therefore the Interim Budget), subject to any 
additional reductions which the Board may choose to make, by no later than June 
30th of each year. Mr. Delventhal has further advised the Budget Analyst that if 
these ordinances are not approved by the Board of Supervisors by June 30, the 
Controller will no longer have authority to issue payroll warrants to City and 
County employees or to issue other warrants to pay for any other City and County 
services. 

Mr. Harrington has previously advised the Budget Analyst that he concurs 
with the opinion of Mr. Delventhal. The Controller would cease to issue any further 
City and County warrants unless the Board of Supervisors approves an Interim 
Annual Appropriation Ordinance and Interim Annual Salary Ordinance (the 
Interim Budget) by June 30. 

12. Various exceptions have been recommended by the Mayor to the Interim 
Annual Appropriation Ordinance and the Interim Annual Salary Ordinance in 
order to authorize a total of 60.4 new positions during the interim budget period 
between July 1 and July 31, including a 0.9 FTE new position in the Department of 
Administrative Services. 13 new positions for City Planning, 10 new positions for 
the Department of Public Health, 16 new positions for the Department of 
Telecommunications and Information Services, 5 new positions for the Emergency 
Communications Department. 9.5 new positions for the Fine Arts Museum and 6 
new positions for the Recreation and Park Department. 



Board of Supervisors 
Budget Analyst 

19 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 



The Mayor's recommended exceptions to the Interim AAO and Interim ASO 
are discussed below, separately for each department. 



Department of Administrative Services 



Program 

Administrative Services 



Class Title 

1372 Special Assistant XIII 



1999-2000 
No. Budget 

Positions Amount 



0.9 



$69,900 



Maximum 
Annual 
Salaries 

$69,900 



The Department requests one new position for hiring as of August 1, 1999 for the 
2000 Census Project. We do not recommend approval of an exception to the Interim 
Appropriation Ordinance, because the explanation for this new position includes 
additional duties beyond the 2000 Census Project, and the proposed new position is 
expected to become permanent, full time. The justification for this new position will 
be analyzed as part of the overall budget review by the Budget Analyst's Office and 
will be reported to the Finance Committee during the next two weeks. 

City Planning 











1999-2000 


Maximum 








No. 


Budget 


Annual 


Program 


Class 


Title 


Positions 


Amount 


Salaries 


Current Planning (FDP) 


1426 


Senior Clerk Typist 


1.0 


$41,176 


$41,815 


Current Planning (FDP) 


5277 


Planner I 


1.0 


46,561 


47,055 


Current Planning (FDP) 


5278 


Planner II 


3.0 


169,774 


171,583 


Current Planning (FDP) 


5291 


Planner III 


5.0 


335,524 


339,159 


Current Planning (FDP) 


5294 


Planner rV 


2.0 


159,260 


160,972 


Current Planning (FDP) 


5297 


Planner V 


L0 


94.408 


95,446 


Totals 






13.0 


$ 846,703 


$856,030 



The Department of City Planning is requesting an Interim Salary Ordinance 
exception of 13 positions for assignment to its Current Planning Program in order 
to address a backlog of cases submitted to the Department for processing. The 
Department's revenue for fee-related work in Current Planning is increasing by 
$1,574,375, from the original budget of $4,940,779 in FY 1998-99 to $6,515,154 in 
FY 1999-00, which is more than sufficient to cover the salary and related cost 



increases. 



The Budget Analyst recommends approval of the Interim Exception request for 
these fee supported positions based on the increased planning permit processing 
workload and proportionate revenue increase. Approval of this Interim Exception 
request will permit the Department to begin recruitment and selection for these 



board of supervisors 
Budget Analyst 

20 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

positions. However, the Budget Analyst does not believe it is realistic that the new 
positions will be filled by July 1, 1999. Therefore, recommendations to adjust 
funding for these new positions will be presented to the Finance and Labor 
Committee over the next two weeks. 

City Planning is also requesting two new, General Fund supported positions in the 
FY 1999-2000 budget. The Budget Analyst is continuing to evaluate the request for 
these two new positions and will report the results of our review to the Finance and 
Labor Committee during the next two weeks. 

Department of Public Health 



Program 



HPH-DPM 
HPH-DPM 
HPH-DMM 
HPH-DMM 



Class 

2548 
2830 
2574 
2930 



Title 

Occupational Therapist 
Public Health Nurse 
Clinical Psychologist 
Mental Health Clinician 



Totals 





1999-2000 


Maximum 


No. 


Budget 


Annual 


Positions 


Amount 


Salaries 


4.0 


S251.898 


$271,328 


4.0 


287,680 


288,410 


1.0 


"-239 


72,993 


10 


62.392 


63.063 


10.0 


$674,209 


$695,794 



The Department of Public Health requests an interim exception for 4.0 FTE new 
Occupational Therapists and 4.0 new Public Health Nurse positions that would be 
added to the Community Health, Maternal and Child Health Program to provide 
services to children with handicaps or catastrophic medical conditions. This 
program is funded by new State revenues funded through MediCal and a new 
"Healthy Families Program". Additionally, the State has informed DPH that the 
City's current Occupational Therapist staffing is deficient in relation to State 
caseload standards. 

A new 1.0 FTE Clinical Psychologist and 1.0 FTE Mental Health Clinician would be 
added to the Mental Health Community Care program to provide mental health 
services for children in foster care. The positions would be funded by Short Doyle 
MediCal, Early Periodic Detection, Screening and Treatment Program (EPDST) 
monies which do not require a County match. These positions were previously 
funded by the State through contractual services in the Citys Department of 
Human Services. 

Approval of this Interim Exception request will permit the Department to begin 
recruitment and selection for these positions. However, the Budget Analyst does not 
believe it is realistic that the new positions will be filled by July 1, 1999. Therefore, 
recommendations to adjust funding for these new positions will be presented to the 
Finance and Labor Committee over the next two weeks. 

Board of Supervisors 
Budget Analyst 



21 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 



Department of Telecommunications and Information Services (DTIS) 



The Department reports that the City's new 911 System will be operational by 
January 15, 2000 and the following 16 positions are essential to ensure successful 
implementation of the System. 

1999-2000 Maximum 

No. Budget Annual 

Program Class Title Positions Amount Salaries 

Network Data, Radio & 1022 

Phone 
Network Data, Radio & 1023 

Phone 
Network Data, Radio & 1024 
Phone 

Subtotal 



Administrator II 


3 


$ 140,325 


$ 171,790 


Administrator III 


1 


56,859 


69,582 


Administrator-Supervisor 


I 


61.177 


74.854 




5 


$ 258,361 


$316,226 



The 5 positions shown above are needed to administer the 60 Local Area Networks 
that have been installed at the Emergency Communications Department, and the 
District Police Stations and Fire Stations. Staffing will be provided 24 hours per 
day. The Budget Analyst recommends approval of these requested five exceptions. 









1999-2000 


Maximum 






No. 


Budget 


Annual 


Program 


Class Title 


Positions 


Amount 


Salaries 


Network Data, Radio & 


1042 Engineer-Journey 


1 


$ 68,086 


$ 76,734 


Phone 










Network Data, Radio & 


1043 Engineer-Senior 


1 


77,990 


84,981 


Phone 










Network Data, Radio &. 


1044 Engineer-Principal 


_1 


74.222 


91.428 


Phone 






Subtotals 




3 


$ 220,298 


$253,143 



According to DTIS, these 3 positions are needed immediately to administer the 
Wide Area Network that is being developed by a contractor. Staffing will be 
provided 24 hours per day. The Budget Analyst recommends approval of these 
requested three exceptions. 



Program 

Network Data, Radio & 

Phone 
Network Data, Radio & 

Phone 

Subtotal 



Class 



Title 



("367 Radio Technician 



"368 Senior Radio Technician 



1999-2000 Maximum 
No. Budget Annual 

Positions Amount Salaries 

5 $310,225 $379,755 



1 



71.838 



87.930 



$ 382,063 $ 467,685 



Board of Supervisors 
Budget Analyst 



22 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 



These 6 positions will be responsible for the City's 800 MHz Radio System and Wide 
Area Network/Local Area Network infrastructure. Training of Radio Technicians 
will be required prior to the January, 2000 date when the City's 800 MHz Radio 
System becomes operational. The training on the radio system will take 6 months. 
Staffing will be provided 24 hours per day. The Budget Analyst recommends 
approval of these requested six exceptions. 



Program 

Management/ Admin. 
Management/Admin. 
Subtotals 



Class Title 

1204 Senior Personnel Clerk 
1244 Senior Personnel Analyst 





1999-2000 


Maximum 


No. 


Budget 


Annual 


Positions 


Amount 


Salaries 


1 


$ 38,340 


S 46,980 


_1 


55.760 


68.225 


2 


S 94,100 


S 115,205 



The Department reports that they are having difficulty recruiting for all 
Information Technology classes in DTIS because of the heavy competition with 
private industry. Although not related to the 911 System these two positions are 
requested to ensure successful hiring and training of the technical support staff. 
Presently, the DTIS personnel function is staffed by one 1240 Department 
Personnel Officer and one 1244 Senior Personnel Officer. DTIS now has total 
staffing of 279 FTEs. The Budget Analyst recommends approval of these requested 
two exceptions. 

1999-2000 Maximum 

No. Budget Annual 

Positions Amount Salaries 



DTIS Grand Total 



16 $954,822 



$1,152,259 



As noted above, 14 of the DTIS requested 16 positions are needed for the City's 911 
System which is anticipated to become operational on January 15, 2000. 

Approval of this Interim Exception request will permit the Department to begin 
recruitment and selection for these positions. However, the Budget Analyst does not 
believe it is realistic that the new positions will be filled by July 1, 1999. Therefore, 
recommendations to adjust funding for these new positions will be presented to the 
Finance and Labor Committee over the next two weeks. 



Board of Supervisors 
Budget analyst 

23 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 



Emergency Communications Department 











1999-2000 


Maximum 








No. 


Budget 


Annual 


Program 


Class 


Title 


Positions 


Amount 


Salaries 


ECD Administration 


1222 


Senior Payroll Clerk 


1 


$41,791 


$51,156 


ECD Administration 


1241 


Personnel Analyst 


1 


38,515 


57,132 


ECD Administration 


1424 


Clerk Typist 


2 


63,684 


76,055 


ECD Administration 


1380 


Special Assistant XXI 












(informally designated 


1 


111.776 


132.849 






as ECD Director) 








Totals 






5 


$ 255,766 


$317,192 



The Emergency Communications Department (ECD) will assume 
management control over 151 Emergency Communications Dispatchers transferred 
from the Police Department effective July 1, 1999. The Police Department has not 
transferred additional administrative support positions however. We therefore 
recommend interim exceptions for the necessary support positions including the 
1222 Senior Payroll Clerk, the 1241 Personnel Analyst and the two 1424 Clerk 
Typist positions for a total of four of the requested five positions. Overall, because of 
the transfer of Dispatcher positions from the Police Department, ECD's total 
number of FTEs in the FY 1999-2000 Mayor's Recommended Budget is 180.29, an 
increase of 156.82 over the 23.47 FTEs in the original FY 1998-99 budget. 

According to Mr. Ed Harrington, Controller, a Selection Committee for the ECD 
Director position, made up of the Controller, the Chief of Police, the Fire Chief, the 
DTIS Executive Director and the Emergency Communications Project Director is 
currently reviewing resumes and will begin interviewing candidates for the ECD 
Director during July, 1999. The actual date of hire for the new ECD Director is still 
uncertain however. 

Approval of this Interim Exception request will permit the Department to begin 
recruitment and selection for these positions. However, the Budget Analyst does not 
believe it is realistic that the new positions will be filled by July 1, 1999. Therefore, 
recommendations to adjust funding for these 5 new positions will be presented to 
the Finance and Labor Committee over the next two weeks. 

Fine Arts Museum 



Program 



Mass 



Title 



Operation & Maintenance 8226 Museum Guard 
of Museums 



No. 
Positions 

9.5 



1999-2000 
Budget 
Amount 

$347,708 



Maximum 
Annual 
Salaries 

$404,159 



Board of Supervisors 
Budget Analyst 

24 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

The Fine Arts Museum is requesting 9.5 new permanent positions to replace 
temporary guards used for traveling exhibition galleries held at the de Young and 
Legion of Honor Museums. Prior to January of 1999, the Fine Arts Museum used 
contract guards, funded with private, off-budget funds, to staff the traveling 
exhibition galleries. In January, 1999, the Department discontinued the use of 
contract guards and hired 9.5 temporary Civil Service Museum Guards, whose 
salaries were paid for with existing funds in the Museum's FY 1998-99 temporary 
salaries budget. Since these guards work year-round on a full-time basis, the 
Museum is now requesting that the existing 9.5 temporary Civil Service Museum 
Guards be converted to permanent status, effective July 1, 1999. The Budget 
Analyst is recommending against the 9.5 new permanent positions because the 
transfer of these 9.5 positions, formerly funded privately by the Fine Arts Museum, 
would now be financed from the City's General Fund, which is not justified. The 
City currently contributes over $4.9 million from the General Fund and from the 
Hotel Tax Fund to the Fine Arts Museum's FY 1998-99 budget. Therefore, General 
Fund support for the Fine Arts Museum would increase by 18.4 percent to nearly 
$5.8 million (excluding the cost of the proposed 9.5 new positions) based on the 
Mayor's Recommended FY 1999-2000 budget. 

Recreation and Park Department 

1999-2000 Maximum 

No. Budget Annual 

Program Class Title Positions Amount Salaries 

Golden Gate Park 9910 Public Service Trainee 6.00 $117,630 $117,630 

The Recreation and Park Department (RPD) is requesting six new positions for its 
Public Service Trainee Program, a return-to-work program which hires temporary 
workers who are unemployed to perform park maintenance and clean-up activities 
in Golden Gate Park for a four-month period. The Program is currently funded 
through RPD's temporary salaries budget and consists of 12 temporary positions. 
For FY 1999-00, RPD is seeking to convert the 12 existing temporary positions to 
permanent status, plus add an additional six permanent positions. This request for 
an Interim Budget exception is being made so that RPD can fill the six new 
permanent positions on July 1, 1999, in time for the relatively busier summer 
months. The Budget Analyst is recommending against approval of these six new 
positions because the intent of the Public Service Trainee Program is to hire 
workers on a temporary, four month basis, and therefore, the Public Service Trainee 
Program should continue to be funded through temporary salaries. 



Board of Supervisors 
Budget Analyst 

25 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

Recommendations Pertaining to Requested Interim Budget Exceptions 

1. As noted above, the Board of Supervisors has not approved new positions and 
programs during the interim budget period without detailed review unless 
exceptions are made. Based on the Departmental justifications described above, the 
Budget Analyst is recommending approval of the following interim budget 
exceptions as of July 1, 1999: 











1999-2000 


Maximum 








No. 


Budget 


Annual 


Department 


Class 


Title 


Positions 


Amount 


Salaries 


City Planning 


1426 


Senior Clerk Typist 


1.0 


541,176 


$41,815 




5277 


Planner I 


1.0 


46,561 


47,055 




5278 


Planner II 


3.0 


169,774 


171,583 




5291 


Planner m 


5.0 


335,524 


339,159 




5294 


Planner IV 


2.0 


159,260 


160,972 




5297 


Planner V 


L0 


94.408 


95.446 


City Planning Total 






13.0 


S 846,703 


$856,030 


Department of Public 












Health (DPH) 


2548 


Occupational Therapist 


4.0 


$251,898 


$271,328 




2830 


Public Health Nurse 


4.0 


287,680 


288,410 




2574 


Clinical Psychologist 


1.0 


72,239 


72,993 




2930 


Mental Health Clinician 


1.0 


62.392 


63.063 


DPH Total 






10.0 


$674,209 


$695,794 


DTIS 


1022 


Administrator II 


3 


$ 140,325 


$ 171,790 




1023 


Administrator HI 


1 


56.859 


69,582 




1024 


Administrator-Supervisor 


1 


61,177 


74,854 




1042 


Engineer-Journey 


1 


68,086 


76,734 




1043 


Engineer-Senior 


1 


77,990 


84,981 




1044 


Engineer-Principal 


1 


74,222 


91,428 




7367 


Radio Technician 


5 


310,225 


379,755 




7368 


Senior Radio Technician 


1 


71,838 


87,930 




1204 


Senior Personnel Clerk 


1 


38,340 


46.980 




1244 


Senior Personnel Analyst 


1 


55.760 


68.225 


DTIS Total 






16 


$954,822 


$1,152,259 


Emergency 












Communications (ECD) 


1222 


Senior Payroll Clerk 


1 


$41,791 


$51,156 




1241 


Personnel Analyst 


1 


38,515 


57,132 




1424 


Clerk Typist 


2 


63,684 


76.055 




1380 


Special Assistant XXI 












(informally designated 


I 


111,776 


132,849 






as ECD Director) 








ECD Totals 






5 


5 255.766 


$317,192 


Grand Total 






44 


$2,731,500 


$3,292,603 



Board of Supervisors 
Budget Analyst 



26 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

Approval of these Interim Exception requests will permit the Department to begin 
recruitment and selection for these positions. However, as previously noted, the 
Budget Analyst does not believe it is realistic that the new positions will be filled by 
July 1, 1999. Therefore, recommendations to adjust funding for these new positions 
will be presented to the Finance and Labor Committee over the next two weeks. 

The Budget Analyst is recommending that the following requested interim 
exceptions be disapproved. 











1999-2000 


Maximum 








No. 


Budget 


Annual 


Department 


Class 


Title 


Positions 


Amount 


Salaries 


Administrative Services 


1372 


Special Assistant XIII 


0.9 


$ 69,900 


$ 69,900 


Fine Arts Museum 


8226 


Museum Guard 


9.5 


347,708 


404,159 


Recreation and Park 


9910 


Public Service Trainee 


600 


117.630 


117.630 


Department 













Total 

In summary of the total requested 60.4 new positions that are requested as 
exceptions to the Interim Annual Appropriation Ordinance and Interim Annual 
Salary Ordinance, the Budget Analyst recommends approval of 44 of the 60.4 
positions and recommends disapproval of 16.4 of the 60.4 positions, for purposes of 
filling such positions immediately as of July 1, 1999. 



Overall Recommendation 

Amend the proposed Interim Annual Appropriation Ordinance and the proposed 
Interim Annual Salary Ordinance, in accordance with the Budget Analyst's 
recommendations for the exceptions as noted above, and approve the legislation as 
amended. 



Board of Supervisors 
Budget Analyst 

27 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

Item 6 - File 99-0690 



Department: 
Item: 



Description: 



Department of Administrative Services (DAS) 

Ordinance amending Chapter 4, Part 1 of the San 
Francisco Municipal Code (Administrative Code) by 
adding Section 4.1-2 to authorize the Department 
of Administrative Services to charge fees for short 
term licenses for use of space at City Hall, filming 
activities at City Hall, and tours of City Hall. 

The proposed ordinance would amend the 
Administrative Code to authorize the Department 
of Administrative Services (DAS) to charge fees for 
short term licenses for use of space at City Hall, 
filming activities at City Hall, and tours 1 of City 
Hah. 



The Attachment to this report was provided by 
DAS and lists the short term license fees before the 
renovation of City Hall, at the re-opening of City 
Hall and as proposed in the subject ordinance. 

According to Ms. Kerry Painter of DAS, prior to the 
renovation of City Hall, the Department of Public 
Works (DPW) managed short-term licenses for use 
of City Hall for events and filming activities. Ms. 
Painter explains that DPW had only charged for 
the labor costs associated with providing the space 
and did not charge for the space, itself. Ms. Painter 
reports and as indicated in the Attachment to this 
report, fees charged before the renovation of City 
Hall resulted in estimated annual revenues of 
$221,400. Ms. Painter further reports and as also 
indicated in the Attachment to this report, the 
proposed fees are expected to generate $744,325 
annually which is the same annual amount 
estimated from the fee structure when City Hall 
was re-opened. Ms. Painter explains that, although 
the estimated annual revenues from short-term 
licenses (a) at the re-opening of City Hall and (b) 
per the proposed ordinance are anticipated to be 



1 These tours would be arranged upon request and would be provided in addition to the tours 
currently offered free to the public four times per weekday. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

28 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 



Comments: 



the same, the rates per type of use are calculated 
differently and are based more directly on the 
actual costs to DAS of providing the space per 
event. 

As noted in the Attachment, the fees range from a 
low of $75 for tour groups of up to 30 people to a 
high of $12,500 for short-term license for use of the 
Rotunda with food service and optional use of the 
Light Courts. 

1. Ms. Painter explains that DAS has charged fees 
since January of 1999 for use of the renovated City 
Hall but that these fees were not previously 
requested to be included in the Administrative 
Code because DAS had not finalized the fee 
structure until the preparation of the subject 
ordinance. Ms. Painter further explains that DAS 
prepared the subject ordinance and finalized the fee 
structure after comparisons were made with other 
governmental agencies and some events were 
hosted at rented City Hall space. 

2. Ms. Painter reports that all of the subject fee 
revenues would be credited to the General Fund. 



Recommendation: 



Approval of the proposed ordinance is a policy 
decision for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

29 



JUN-02-1999 l?:i£ 



CCSF fiDMIN. SERU1CES 



415 554 6177 P. 02/02 

Attachment 



SHORT TERM LICENSE FEES TEvent Fees") Before Renovation At Bldg Opening Proposed # Events Total Revenue 



5,400 



12.500 12,500 



12 



5,400 


9,375 


9,375 


11 


103.125 


5,400 


10.000 


10.000 


8 


80,000 


5.400 


7,500 


7,500 


6 


45.000 




4.000 


4.000 


16 


54,000 




3.000 


3,000 


11 


33.000 




2,000 


2.000 


14 


28,000 



540 



Rotunda Rat Rate 
With Food Served 
May indiude Light Courts 
25% 501 c3 Discount Rate 

Rotunda Fiat Rate 
Without Food Service 
May Include Light Courts 
25% 501 c3 Discount Rate 

North or South Light Court Only Flat Rate 
With food served and/or Satruday or 
Sunday rental 

25% 501 c3 Discount Rate 

North or South Light Court Only Rat Rate 
Without food served Monday 
through Friday 

Rotunsda Hourly Rate 

8AM-4PM, Saturday & Sunday Only 

North Light Court Hourly Rate 
8AM - 4PM 

South Light Court Hourly Rate 
BAM-4PM, Saturday & Sunday Only 

P&r Person Charge for Every Guest Over 100 
(cahrge added to both hourly and flat rates) 

Filming Activities 

Tour Groups of up to 30 people 

Tour Groups over 30 Pariticpants 

TOTAL REVENUES 



NOTES 

No Light Court rates are included in the first column because the light courts were not available for event 

when the building used to be occupied. 

When the building was occupied prior to the renovation, there were typically 10 or fewer events per year. 



1,000 
500 
500 



1,000 



500 



500 



48 



54 



Note: Rates are negotiated 



150,000 



48.000 



32.000 



75,600 









10.000 





75 


86 


75,600 





125 






744.325 



TOTAL P. 02 



30 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

Item 7- File 99-0916 

Note: This item was continued by the Finance Committee at its meeting of May 
26, 1999. 

1. The proposed ordinance would amend Section 16.157 of the 
Administrative Code to approve the City's FY 1999-2000 Health Service System 
plans and rates of contribution, as adopted by the Health Service Board, to be paid 
by the members of the System. The members of the System are employees, retirees, 
and surviving spouses of former employees and retirees of the City and County of 
San Francisco, the San Francisco Unified School District, and the Community 
College District. 



Health Plans 

2. The Board of Supervisors previously adopted a resolution (File 99-0606) 
setting the City's contribution to the Health Service Fund for FY 1999-2000 at 
$180.85 per month for each member. The City's contribution was established in 
accordance with Charter Sections A8.423 and A8.428, which set the average 
contribution rate based on a survey of the 10 most populous counties in California 
(excluding San Francisco). The City's contribution of $180.85 per month ($2,170.20 
annually) represents an increase of $6.09 per month, or approximately 3.5 percent, 
from the FY 1998-99 rate of $174.76 per month ($2,097.12 annually). 

3. Once the City's contribution is established, member contributions are 
calculated by the Health Service System actuary, Rael and Letson, Consulting 
Actuaries, in order to ensure that contributions from all sources will be adequate to 
support anticipated claims for the upcoming fiscal year. The proposed ordinance 
would establish member contribution rates for FY 1999-2000 in accordance with 
Charter Sections A8.421 and A8.422. Charter Sections A8.421 and A8.422 require 
approval by three-fourths of the members of the Board of Supervisors after the 
Board has secured an actuarial report of the costs and effects of any proposed 
change in the benefits of the Health Service System or rates of contribution. 
Contribution rates vary according to: (1) whether or not a member is an active 
employee, retired employee, or surviving spouse; (2) whether or not that individual 
has Medicare coverage; and (3) which of the City's four health plans that individual 
elects to join. The actuarial report and details of the member contribution rates are 
contained in the file of the Clerk of the Board. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

31 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 



4. The following plans will be offered in FY 1999-2000: 

• City Health Plan* 

• Kaiser Foundation Health Plan 

• Health Net 

• PacifiCare 

* Administered by the City's Health Service System. 

5. According to Ms. Ann Sommercamp, Deputy Director of the Health Service 
System, the total amount of employer and member contributions for the health 
plans in FY 1999-2000 is estimated to be $192.6 million, which is approximately 
11.7 percent ($20.2 million) more than the projected 1998-99 combined employer 
and member contributions of $172.4 million. A summary of the estimated FY 1999- 
2000 employer and employee contributions of $192.6 is as follows: 



City and County Employer Contribution 

- Active Employees 

- Retired Employees and Surviving Spouses 

School District/Community College District 
Employer Contribution 

- Active Employees 

- Retired Employees and Surviving Spouses 

Total Employer Contributions 

Member Contributions 

TOTAL CONTRIBUTIONS 



Amount 
(Millions) 

$101.1 
20.3 



Percent 

of Total 

Contributions 

52.5% 
10.5% 



24.0 


12.5% 


1.1 


4.0% 


$153.1 


79.5% 


39.5 


20.5% 


$192.6 


100.0% 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

32 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

6. According to Ms. Sommercamp, of tbe total estimated employer 
contributions of $153.1 million, approximately $109.0 million or 71 percent, would 
be contributed from tbe City's General Fund. The remaining $44.1 million of 
employer contributions would be paid from the City's Special Funds (e.g., Airport, 
Port, Water Department and Hetch Hetchy) and from Unified School District and 
Community College District revenue sources. 

7. As shown in Table 1 below, the change in the monthly rates to be paid by 
active City employees with no dependents (single employees) for FY 1999-2000 
ranges from no change in the monthly rate to a 155 percent increase of $67.18 per 
month ($806.16 annually), depending on the health plan selected (see Comment No. 
9 for an explanation of this increase). 

A comparison of the FY 1998-99 monthly rates for to be paid by active City 
employees with the proposed FY 1999-2000 rates adopted by the Health Service 
Board is as follows: 

Table 1 

Monthly Health Plan Rates to be Paid by Active City Employees 

FY 1998-99 and FY 1999-2000 



1998-99 1999-2000 Monthly Percentage 



City Health Plan 
Single Employee 
Employee plus one dependent 
Employee plus two dependents 

Kaiser Foundation Health Plan 
Single Employee 
Employee plus one dependent 
Employee plus two dependents 

Health Net 

Single Employee 

Employee plus one dependent 

Employee plus two dependents 

PacifiCare 

Single Employee 

Employee plus one dependent 

Employee plus two dependents 



Monthly 


Monthly 


Increase/ 


Increase 


Rates 


Rates 


(Decrease) 


(Decrease) 


$43.43 


$110.61 


$67.18 


155% 


238.12 


317.75 


79.63 


33% 


423.92 


536.71 


112.79 


27% 


2.00 


4.00 


2.00 


100% 


164.38 


182.58 


18.20 


11% 


299.16 


330.81 


31.65 


11% 


2.00 


2.00 


-0- 


0% 


165.72 


170.36 


4.64 


3% 


302.80 


311.13 


8.33 


3% 


2.00 


2.00 


-0- 


0% 


152.81 


162.00 


9.19 


6% 


279.18 


295.15 


15.97 


6% 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



33 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

8. A comparison of the FY 1998-99 monthly rates to be paid by retired City 
employees who are enrolled in the Health Service System with the proposed FY 
1999-2000 rates adopted by the Health Service Board is as follows: 

Table 2 

Monthly Health Plan Rates to be Paid by Retired City Employees* 

FY 1998-99 and FY 1999-2000 



1998-99 1999-2000 Monthly Percentage 



City Health Plan 
Single Subscriber 
Subscriber plus one dependent 

(dependent not Medicare eligible) 
Subscriber plus one dependent 

(dependent is Medicare eligible) 



Monthly 
Rates 

$0 
194.69 

157.92 



Monthly 
Rates 

$65.11 
272.25 

228.69 



Increase/ Increase 
(Decrease) (Decrease) 



$65.11 
77.56 

70.77 



40% 
45% 



Kaiser Foundation Health Plan 

Single Subscriber 0% 

Subscriber plus one dependent 162.38 178.58 16.20 10% 

(dependent not Medicare eligible) 
Subscriber plus one dependent 28.31 13.62 (14.69) (52%) 

(dependent is Medicare eligible) 

Health Net 

Single Subscriber 0% 

Subscriber plus one dependent 166.07 168.36 2.29 1% 

(dependent not Medicare eligible) 
Subscriber plus one dependent 40.17 35.47 (4.70) (12%) 

(dependent is Medicare eligible) 

PacifiCare 

Single Subscriber 0% 

Subscriber plus one dependent 153.16 159.64 6.48 4% 

(dependent not Medicare ebgible) 
Subscriber plus one dependent 28.64 31.54 2.90 10% 

(dependent is Medicare eligible) 

* Rates listed are those paid by subscribers who are eligible for Medicare Parts A &. B. According to 
the Health Services System, such subscribers and their dependents comprise over 90 percent of 
retired enrollees in the System. For more detailed rate schedules, see the member contribution 
rate schedules on file with the Clerk of the Board. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



34 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

As shown in Table 2 above, the change in the monthly rates to be paid by 
retired City employees with no dependents (single subscribers) for FY 1999-2000 
depending on the health plan selected ranges from a 52 percent decrease of $14.69 
per month ($176.28 annually) to an increase of $65.11 per month or $781.32 
annually (in FY 1998-99 there was no charge to a retired single subscriber). See 
Comment No. 9 for a further explanation of this increase. 

9. Ms. Sommercamp advises that the reason contribution rates for City 
employees and retirees under the City Health Plan are increasing is in large part 
because in FY 1998-99 a portion of the costs of the City Health Plan were subsidized 
by the Plan's Trust Fund and in FY 1999-2000 no such subsidy will be made. The 
Plan's Trust Fund is made up of accumulated employer and employee contributions 
to the City Health Plan and the interest earned on those monies. For FY 1998-99, it 
was determined by the Health Service System that sufficient funds existed in the 
Trust Fund to cover projected medical claims and subsidize member contributions, 
however for FY 1999-2000 it has been determined that Trust Fund monies are not 
sufficient to both cover projected medical claims and provide a subsidy. The Health 
Services System reports that, as of June 30, 1997, the balance in the Trust Fund 
was approximately $29.0 million compared to $12.5 million as of June 30, 1998. 

According to the Health Services System, in FY 1998-99 employee 
contributions to the City Health Plan were subsidized by the Trust Fund at an 
average monthly rate of $42.66 per single active employee. As a result, such a 
Trust Fund subsidy of active employee contributions in FY 1998-99 resulted in City 
employer contributions for retirees in FY 1998-99 at a higher rate than in FY 1999- 
2000, according to a formula set by the Charter, which therefore decreased the 
retiree contribution. For example, in FY 1998-99, the majority of retirees received a 
City employer contribution of $166.16 compared to $102.51 in FY 1999-2000. For a 
more detailed explanation of the Trust Fund and why employee and retiree 
contribution rates have increased, see Items 2 and 3, Files 99-0846 and 99-0468 of 
this report to the Finance and Labor Committee. 

10. A description of the changes to the City Health Plan health benefits in 
FY 1999-2000 is provided in the Attachment, provided by the Health Services 
System. According to the Health Services System, the major changes in the City 
Health Plan benefits include an annual deductible for all members (employees and 
retirees) who use a physician designated as a "preferred provider" of $250 for single 
members (currently members who use a "preferred provider" pay no annual 
deductible) and an annual prescription deductible for all members of $50 (currently 
there is no deductible for prescriptions). The Health Services System reports that no 
major benefit changes were made to the other three health plans offered by the City 
in FY 1999-2000. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

35 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

Dental Plan Benefits 



11. The Health Service Board has approved the continuance of Delta Dental 
of California, the PMI DeltaCare Dental Plan and the Pacific Union Dental Plan. 
According to Ms. Sommercamp, as of March 1, 1999, a total of 25,509 active and 
retired employees were enrolled in the existing City-paid dental plans. Under the 
dental plans, all premiums for active City employees are paid by the City (there is 
no employee contribution). Retirees, and active Community College District and 
SFUSD employees must pay their dental benefits in full according to a separate 
schedule. Total premiums projected to be paid by retirees, and active City College 
and SFUSD employees will total $2.1 million in FY 1999-2000, an increase of $0.3 
million (16.7 percent) over projected premiums for FY 1998-99 of $1.8 million. As 
shown in Table 3 below, total premiums (based on current membership) to be paid 
by the City for its active employees will be an estimated $26.1 million for FY 1999- 
2000, an increase of approximately $1.1 million (4.4 percent) over projected 
premiums for FY 1998-99 of approximately $25.0 million. A summary' of these costs 
is as follows: 

Table 3 

Projected Annual Dental Plan Premiums to be Paid by the City 

for Active City Employees. FY 1998-99 and FY 1999-2000 



Delta Dental of California 
PMI DeltaCare Dental Plan 
Pacific Union Dental Plan 
Total 





Projected 


Projected 




1998-99 


1999-2000 


Employee 


Premiums* 


Premiums** 


Membership 


(in millions) 


(in millions) 


23.183 


$22.9 


$23.7 


1.584 


1.5 


1.6 


742 


0.6 


0.8 



25.509 



$25.0 



$26.1 



Based on March 1, 1999 enrollments at existing monthly rates. 
Based on March 1, 1999 enrollments at FY 1999-2000 rates. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

36 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

12. A comparison of the FY 1998-99 and FY 1999-2000 monthly premium 
rate schedules for employer contributions of the three dental plans is as follows: 



Table 4 

Monthly Dental Plan Rates to be Paid by the City for 

Active City Employees, FY 1998-99 and 1999-2000 



Delta Dental 

Single Employee 

Employee plus one dependent 

Employee plus two dependents 

PMI DeltaCare Dental Plan 
Single Employee 
Employee plus one dependent 
Employee plus two dependents 

Pacific Union Dental Plan 
Single Employee 
Employee plus one dependent 
Employee plus two dependents 



1998-99 

Monthly 

Rates 

$46.68 

79.36 

121.37 



22.17 
36.58 
54.09 



18.55 
29.15 
46.11 



1999-2000 Monthly Percentage 
Monthly Increase/ Increase 
Rates (Decrease) (Decrease) 



$48.05 

78.96 

118.70 



22.17 
36.58 
54.09 



20.40 
33.65 
49.76 



$1.37 
(0.40) 
(2.67) 



-0- 
-0- 

-0- 



1.85 
4.50 
3.65 



3% 

(1%) 
(2%) 



0% 
0% 
0% 



10% 

15% 

8% 



13. A choice of three dental plans that are fully paid for by retirees and 
active employees who are ineligible for employer paid dental coverage will also 
continue to be offered at no cost to the City. In both FY 1998-99 and FY 1999-2000, 
the three dental plans have reduced benefits, such as a lower maximum annual 
payment and no orthodontic benefits, in order to reduce the premium cost for plan 
participants. Active employees who are not eligible for employer paid dental 
coverage include Unified School District and the Community College District 
employees. 

A comparison of the monthly premium rates to be paid by retired City 
employees and other employees who are ineligible for employer paid dental coverage 
(i.e. active employees of the Unified School District and Community College 
District) for the FY 1998-99 and FY 1999-2000 dental plans are shown in Table 5 
below: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



37 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 



Table 5 

Dental Plan Monthly Premium Rates to be Paid by Retired City Employees 

and Active Employees Who Are Ineligible for Employer Paid Coverage 

FY 1998-99 and FY 1999-2000 



Delta Dental 

Single Employee 

Employee plus one dependent 

Employee plus two dependents 

PMI Delta Care Dental Plan 
Single Employee 
Employee plus one dependent 
Employee plus two dependents 

Pacific Union Dental Plan 
Single Employee 
Employee plus one dependent 
Employee plus two dependents 



1998-99 

Monthly 

Rates 


1999-2000 

Monthly 

Rates 


Monthly 
Increase/ 
(Decrease) 


Percentage 

Increase 

(Decrease) 


$30.38 
60.47 
85.08 


$34.72 
56.30 
84.04 


$4.34 
(4.17) 
(1.04) 


14% 
(7%) 
(1%) 


13.69 
22.59 
33.41 


13.69 
22.59 
33.41 


-0- 
-0- 
-0- 


0% 
0% 
0% 


10.86 
19.35 
27.56 


13.14 
21.69 
32.07 


2.28 
2.34 
4.51 


21% 
12% 
16% 



Comment 

Many of the City's MOU's contain provisions whereby the City pays a portion 
of the employee's cost for the health and dental plans. Such payments by the City 
are not reflected in the data provided by the Health Sen-ice System shown in the 
tables of this report. The majority of City workers are covered by MOU's which 
provide that the full employee premium for single employees is paid by the City and 
up to $225 of the employee premium for an employee with dependents is paid by the 
City. For example, contrary to the data shown in Table 1, a single employee 
enrolled under the City Health Plan paid nothing in FY 1998-1999 instead of the 
rate of $43.43 per month and would again pay nothing under the proposed FY 1999- 
2000 rates instead of the rate of $110.61 per month. An employee with one 
dependent enrolled under the City Health Plan in FY 1998-99 paid $13.12 per 
month instead of $233.12 and would pay $92.75 per month under the proposed FY 
1999-200 rates instead of the rate of $317.75. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



38 



Memo to Finance and Labor Committee 

June 9, 1999 Finance and Labor Committee Meeting 

Recommendation 

Since the Health Service System reports that the selection of the Health 
Service System plans and determination of the rates of member contribution 
for such plans have been conducted in accordance with the provisions of the 
City Charter, approve the proposed ordinance. 




Harvey M. Rose 



cc: Supervisor Yee 

Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

39 



ATTACHMENT 

4/30/99 
SECTION 3 CHANGES IN BENEFIT PLANS . 

You should carefully review the following changes in Benefit Plans before making your Open Enrollment decisions. 
(a) Changes To City Health Plan . 

(1) Annual PPO Deductible . The Annual PPO Deductible is $250 for employee only, $500 for employee 
+ 1 , and $750 for employee + 2 or more. It will be applied to all claims before payment. For 
employee only, this means the member is responsible for the first $250 of medical charges. * 

(2) Catastrophic Loss . The Health Plan will pay 100% of all PPO charges once the member (or family) 
has incurred $25,000 of PPO expenses in any benefit year. This applies to the nine Bay Area PPO 
counties only.* 

(3) No Fixed Dollar Copays . The PPO will no longer have copays. Rather City Plan will pay 85% of 
PPO and 50% of UCR charges for non-PPO contract rates once the annual deductible is satisfied. 
This applies to all medical charges: Hospital, physician, lab. X-ray, MRJ, emergency room, etc.* 

(4) Annual Non-PPO Deductible . The annual non-PPO deductible will be $500 for employee only, 
$1,000 Jpr employee + 1, and $1,500 for employee + 2. If a member uses both PPO and non-PPO 
providers, the member will need to satisfy the non-PPO deductible. The City Plan will then pay 50% 
of UCR charges per member.' 

(5) Members Outside PPO . For individuals who reside outside of the nine Bay Area PPO counties, City 
Plan will continue to pay 80% of covered charges after the annual deductible of $250 for employee 
only, $500 for employee + 1 , and $750 for employee + 2 or more is satisfied. 

(6) Annual Prescription Deductible . An annual prescription deductible of $50 for employee only, $100 
employee + 1, and $150 employee + 2 or more will be implemented. For employee only, this means 
the member is responsible for the first $50.00 of prescription costs. Once this deductible is met, the 
member is responsible for a $9 (generic) or $18 (brand) copayment for a 30-day supply for each 
prescription. 

*^r After the annual prescription deductible is met, the mail order drug benefit copayment b $18 

(generic) and $36 (brand) for a 90-day supply. No controlled substances can be ordered via 
mail order. 

^r (7) Use of Brand Instead of Generic If von have a prescription for a brand name drug and there 
is a generic equivalent available, the drug will be filled using the generic If the physician 
and/or patient requests the brand name, the member is responsible for the difference between 
the generic and brand name drug. 

(8) Drug Utilization Review . A Drug Utilization Review (DUR) program will be instituted July 1, 1999 
This program will determine appropriateness of prescribed medicine. This will prevent prescription 
being filled when contra indicated conditions are noted. It will also monitor appropriate dosage. 

(9) Acupuncture and Chiropractic . The acupuncture and chiropractic (PPO and non-PPO) payment is 
50% of charges once the annual deductible has been satisfied. The annual limit on acupuncture and 
chiropractic benefits is $1,000 per year for each benefit. 



* The local network PPO consists of the nine (9) Bay Area counties: Alameda, Contra Costa, Marin, Napa, San 
Francisco, San Mateo, Santa Clara, Solano and Sonoma. These rules apply to the nine Bay Area PPO counties only 

40 




Public Library,Gov't Info. Ctr., 5 th Fir. 



Attn: Susan Horn 
CITY AND COUNTY \&ZM&G&L OF SAN FRANCISCO 

9*54 

BOARD OF SUPERVISORS 

l BUDGET ANALYST 

or's . ■ 1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 

=Y/flf-ao*> FAX (415) 252-0461 



<fa 



June 11, 1999 

TO: /{ , Finance and Labor Committee DOCUMENTS DEPT. 

FROM: x Budget Analyst JUN 1 6 1999 

SUBJECT: Mayor's Recommended FY 1999-2000 Budget 3AN FRANCISCO 

\ PUBLIC LIBRARY 

The Budget Analyst has conducted a detailed review of the Mayor's 
recommended FY 1999-2000 budget and has prepared reports and 
recommendations to reduce the Mayor's recommended budget. Our reports (a) 
describe the service impacts resulting from the Mayor's recommended budget when 
services are affected (b) contain recommendations to reduce various budgeted items 
and (c) contain recommendations to reserve various budgeted items only if 
insufficient data has been submitted to support the budget requests. The 
recommendations of the Budget Analyst to reduce the Mayor's budget, to be 
considered by the Finance and Labor Committee over the next two weeks, would 
not result in any existing service level reductions. 

SUMMARY OF CHANGES IN EXPENDITURES AND POSITIONS 

The Mayor's recommended FY 1999-2000 budget of $4,194,617,922 is 
$312,749,314 or approximately 8.1 percent more than the FY 1998-99 budget of 
$3,881,868,608 as finally approved in the FY 1998-99 Annual Appropriation 
Ordinance. 

The Mayor's recommended FY 1999-2000 total General Fund budget, 
including General Fund Department expenditures and General Fund contributions 
to General Fund Supported Departments, of $1,983,725,272 is $164,096,930 more 
than the FY 1998-99 General Fund budget $1,819,628,342, an increase of 9.0 
percent. 



Memo to Finance and Labor Committee 
June 11, 1999 



The Mayor's recommended FY 1999-2000 budget includes 27,439 funded 
positions or 1,454 more positions than the 25,985 funded positions shown in the 
original FY 1998-99 budget approved by the Mayor and the Board of Supervisors. 
The 27,439 positions in the Mayor's recommended FY 1999-2000 budget is 1,391 
positions more than the 26,047 positions in the revised FY 1998-99 budget, after 
adjusting for supplemental appropriations approved subsequent to the approval of 
the FY 1998-99 budget. 

A total of 725 or 49.9 percent of the 1,454 total new positions are funded from 
General Fund and General Fund-Supported departments. 



General Fund Expenditures and Reserves 

The table below provides comparative data, for General Fund Expenditures, 
Contributions to General Fund Supported Departments and Reserves, between the 
original FY 1998-99 budget and the Mayor's Recommended 1999-2000 budget. 

General Fund 
Comparison of Expenditures and Other Uses 



USES OF FUNDS 

Regular Expenditures 
Gross Expenditures 
Less Interdepartmental 

Recoveries 
Net Regular Expenditures 
Capital Improvement/ 

Facilities Maintenance 
Contribution Transfers to 

General Fund Supported 

Departments * 
Reserves 

General Fund Reserve 
Total Uses of Funds 









Increase 


Percent 








(Decrease) 


Increase 


FY 


FY 


FY 


from FY 


(Decrease) 


1998-99 


1998-99 


1999-2000 


1998-99 


from 


Original 


Revised 


Proposed 


Original 


Original. 


51.770.450,012 


$1,812,446,805 


$1,882,174,850 


$111,724,838 


6.3% 


(159.171.118) 


(179.556.899) 


(176.514.135) 


(17.343.017) 


10.9% 


$1,611,278,894 


$1,632,889,906 


$1,705,660,715 


$94,381,821 


5.9% 


21,416,798 


12.116,160 


21,719,110 


302,312 


1.4% 


126,675,063 


143,598,500 


192.126.026 


65,450,963 


51.7% 


35,257,587 


16.279,943 


39.219.421 


3.961.834 


11.2% 


25.000.000 


20.508.675 
$1,825,393,184 


25.000.000 
$1,983,725,272 


. 


. 


$1,819,628,342 


$164,096,930 


9.0% 



General Fund Contributions to General Fund Supported Departments shown herein 
reflect corrections made by the Controller's Office to the Final 1998-99 Annual 
Appropriation Ordinance and the Interim 1999-2000 Annual Appropriation Ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

2 



Memo to Finance and Labor Committee 
June 11, 1999 



As can be seen from the table above, total General Fund expenditures, 
including Contribution Transfers to General Fund Supported Departments, has 
increased by $164,096,930 or 9.0 percent. The largest percentage increase in 
General Fund expenditures is for Contribution Transfers to General Fund 
Supported Departments, which increased by $65,450,963 or 51.7 percent. Such 
Contribution Transfers are to subsidize non-General Fund operations, primarily the 
Public Transportation Commission (Muni), San Francisco General Hospital (SFGH) 
and Laguna Honda Hospital (LHH). Overall, the Mayor's Recommended FY 1999- 
2000 budget increases Contribution Transfers to Muni, SFGH and LHH by a total 
of $65,608,438. Contributions to other non-General Fund operations have decreased 
by $157,475, resulting in the net increase in Contribution Transfers to General 
Fund Supported Departments of $65,450,963. 

The Mayor's recommended FY 1999-2000 budget contains an undesignated 
General Fund Reserve of $25,000,000, which is the same amount for the General 
Fund Reserve as finally approved in the FY 1998-99 Annual Appropriation 
Ordinance. 

In addition, the City has an Emergency Reserve Fund balance of $4,198,046 
carried forward from FY 1998-99 into FY 1999-2000. 

Designated Reserves 

In addition to the undesignated General Fund Reserve of $25,000,000, the 
Mayor's Recommended FY 1999-2000 budget contains six designated General Fund 
Reserves as follows: 

100 Temporary Parking Control Officers (PCO) Traffic Program $ 500,000 

On- City line Access 500,000 

State Aid Payments 1,383.000 

Litigation Reserve 9,000,000 

Salary and Benefits 23,336,421 

Year-End Closing Adjustments 4.500.000 

Total Designated Reserves $39,219,421 

The Litigation Reserve is established every year to set aside funds for 
lawsuits and related expenses anticipated by the City Attorney for the 1999-2000 
Fiscal Year. The Salary and Benefits Reserve is calculated by the Controller and 
the Mayor's Office to provide funding for pending labor agreements that have not 
yet been approved by the Board of Supervisors. The Year-End Closing Audit 
Adjustments Reserve is established to provide funds for necessary expenditure 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

3 



Memo to Finance and Labor Committee 
June 11, 1999 



adjustments that are required during the closeout of the 1998-99 Fiscal Year and 
preparation of the Consolidated Annual Financial Report. 

The remaining reserves shown in the table on the previous page will require 
a supplemental appropriation, approved by both the Mayor and the Board of 
Supervisors prior to release of such reserves. According to Mr. Matthew Hymel, 
Mayor's Director of Finance, the Reserve in the amount of $500,000 for the 100 
Temporary Parking Control Officers (PCOs) Traffic Program is recommended to set 
aside funds for the hiring of additional Temporary PCOs in the Department of 
Parking and Traffic (DPT) once the DPT has filled its permanent PCO staff 
vacancies. According to Mr. Hymel, such Temporary PCOs are intended to improve 
traffic and parking management and increase parking fine revenue. 

The On- City line Access Reserve of $500,000 is for a potential project to 
allow payment of City fines, fees and other items on-line. According to Mr. Hymel, 
this project has not yet been fully developed, so this reserve has been set aside for 
potential start-up costs. 

The State Aid Payment Reserve of $1,383,000 has been recommended by the 
Mayor to set aside funds for increased General Fund expenditures in the event that 
the State approves a cost of living adjustment for Temporary Aid for Needy 
Families (TANF) recipients. The amount of $1,383,000 is the anticipated General 
Fund cost for such an adjustment, and for any additional costs resulting from a cost 
of living increase for the City's County Adult Assistance Program (or CAAP. 
formerly the General Assistance program) recipients which would be triggered by 
the TANF benefit increase as required by the City ordinance that created the 
County Adult Assistance Program. 

Mayor's Reserves 

The Mayor's Recommended Budget has also placed the following projects on 
reserve, subject to release of funds by the Mayor, without approval by the Board of 
Supervisors of a supplemental appropriation. 

Millenium Event Safety $ 1.218,226 
Year 2000 Project 2.250,000 

Court Management System 1,790,463 

Citywide Capital Projects 2.750.000 * 

Total Mayor's Reserve $ 8,008.689 

The 52,750,000 for Citywide Capital Projects is not designated in the Interim Annual 
Appropriation Ordinance as a Mayor's reserve. However, Mr. Hymel informs the Budget Analyst 
that the intended reserve will be shown in the Final Annual Appropriation Ordinance. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

4 



Memo to Finance and Labor Committee 
June 11, 1999 



According to Mr. Hymel, the Millenium Event Safety Reserve of $1,218,226 is 
for Police and Sheriffs personnel costs and other related expenditures, in the event 
that the Year 2000 New Year's Eve celebration warrants extraordinary- 
expenditures for law enforcement services. The majority of the reserve is for Police 
Overtime ($609,720 including fringe benefits) and Sheriffs Department overtime 
salaries ($533,506). The reserve also includes $75,000 for potential non-salary costs. 

The $2,250,000 Mayor's Reserve for the Year 2000 Project is for additional, 
unforeseen expenses related to Y2K compliance. As previously reported to the 
Finance and Labor Committee by the Budget Analyst, total appropriations between 
Fiscal Year 1997-98 and Fiscal Year 1998-99 related to Y2K compliance have 
amounted to $4,981,954. If the additional $2,250,000 for the Year 2000 Project 
reserved in the Mayor's budget is expended, then total expenditures for Y2K will 
amount to $7,231,954. In addition to the Mayor's Year 2000 Project reserve, the 
Budget Analyst has identified $1,678,469 in Y2K related equipment replacement 
for the Treasurer/Tax Collector ($1,361,789) and Department of Public Health 
Medical Records Systems ($316,680) within the respective departmental budgets. 
This proposed equipment replacement would further increase Y2K expenditures to 
a total of $8,910,423. 

The Court Management System Project Reserve of $1,790,000 has been 
established by the Mayor pending the receipt of State funding for the Court 
Management System Project and a specification of the purposes for which such 
funds will be expended by the Trial Courts. The Court Management System is a 
computer system shared by the City's criminal justice agencies to track individuals 
from arrest to court disposition. This planned project would allow for conversion 
from a mainframe computer to smaller computers and development of a more 
current data base management system. 

The $2,750,000 Mayor's Reserve for Citywide Capital Projects is to set aside 
funds for unspecified capital needs that may arise during the 1999-00 Fiscal Year. 

The Mayor's Reserves described above are budgeted in the General City 
Responsibilities Department and the Department of Public Works (for the 
$2,750,000 Citywide Capital Reserve). The Budget Analyst will recommend that all 
four of the Mayor's Reserves also be reserved by the Finance and Labor Committee 
in order for the Committee to review and consider the future expenditures from 
such reserves. Our recommendation for such reserves will be included in the 
General City Responsibilities budget and the Department of Public Works budget. 
Mr. Hymel has indicated that he will request that the Finance and Labor 
Committee only reserve $1,125,000 of the $2,250,000 Year 2000 Project Reserve to 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

5 



Memo to Finance and Labor Committee 
June 11, 1999 



permit some flexibility in funding necessary Y2K compliance work during the first 
few months of FY 1999-2000. 

Controller's Reserves 

The Controller has established total reserves for expenditures included in 
departmental budgets in the amount of $163,096,817 for various expenditures as 
described below: 



Department 

Department of Human 
Services (DHS) 



Business and 

Economic 

Development 



Reason for Reserve 
Pending receipt of 
Federal Fundins 



Southeastern 
Environmental 
Mitigation - Detailed 
expenditure plan not yet 
available. 



Expenditure Reserved Amount 

Non Persona] Services (SI 1.831,087); 
Aid Assistance (S100.000); Non- 
Custodial Parents Pilot Project 
(51,069,682); California Welfare 
Informanon Network (S6.442.003) S 1 9,442,772 

Funding approved in FY 1998-99 State 

Budget to: a I mitigate community issues 

and avoid environmental impacts arising 

from the sale of the Potrero Power Plant 

($3,000,000); b) mfrastrucrure 

improvements related to shut down of the 

Hunters' Point Power Plant and or the 1 3,000,000 

sale of the Potrero (SI 0.000.000) 



Police * 



Pending receipt of new 
Federal Grant Funds for 
the Community Oriented 
Policing (COPs) in 
School and the COPs 
.Ahead programs which 
would add a total of 86 
new Police Officers in 
FY 1999-2000. 



Salaries (S3.799.627); Fringe Benefits 

(S754.568). 

Includes Federal Funds of S2. 633. 333 

and a General Fund match of SI. 920.862. 



4.554.195 



Water Department 



Pending sale of 
commercial paper for 
financing of capital 
program 



Total Controller's Reserves 



Capital Improvement Projects (Water 
Bond funded projects initially financed 
through the sale of commercial paper). 



126.099.850 
S 163,096,817 



The reserve for the Police Department has been restated to correct coding errors 
in the Interim Annual Appropriation Ordinance. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

6 



Memo to Finance and Labor Committee 
June 11, 1999 



Since there is no detailed expenditure plan presently available for the 
$13,000,000 reserve for the Southeastern Environmental Mitigation, the Budget 
Analyst has recommended that these monies be reserved by the Finance and Labor 
Committee in the Business and Economic Development Department. 

Sources of Funds: Revenues and Contribution 
Transfers 



FY 1998-99 General Fund Year End Surplus 



The March 3, 1999 Joint Report prepared by the Mayor's Director of Finance, 
the Controller and the Budget Analyst projected a General Fund revenue surplus of 
$1,500,000 for Fiscal Year 1999-2000. At that time, the Controller had estimated 
that the FY 1998-99 General Fund year end surplus, which would be available as a 
source of funds for the Fiscal Year 1999-2000 budget, would amount to $86,000,000. 
Subsequently, on May 3, 1999, the Controller issued his Nine-Month Budget Status 
report with an $100,900,000 estimate of the FY 1998-99 General Fund year end 
surplus. The Mayor's Recommended 1999-2000 budget includes General Fund prior 
year surplus funds in the amount of $102,900,000, $2,000,000 over the Controller's 
May 3, 1999 estimate for the FY 1998-99 surplus, and an increase of $1,000,000 
over the $101,900,000 FY 1997-98 estimated surplus which was used as a source of 
funds for the original FY 1998-99 budget. According to Controller Ed Harrington, 
the increase in the General Fund prior year surplus funds of $2,000,000 over the 
Controller's May 3, 1999 estimate is the result of an increased allocation of State 
Health Realignment funds for Fiscal Year 1998-99. 

Regular Revenues 

The Budget Analyst has reviewed the major budgeted General Fund 
revenues in the Mayor's Recommended FY 1999-2000 budget and found that such 
major revenues reflect the Controller's Nine-Month Budget Status report adjusted 
for revenue growth rates that are consistent with the assumptions employed by the 
March 3, 1999 Joint Report prepared by the Mayor's Director of Finance, the 
Controller and the Budget Analyst. In summary, Property Taxes are budgeted to 
increase by 5.6 percent over projected actual FY 1998-99 Property Tax revenue 
(based on the actual growth in the property assessment roll); Business Taxes (the 
Gross Receipts Tax, the Employers Payroll Tax and the Business License Tax) are 
budgeted to increase 5.0% over projected actual FY 1998-99 revenue and Sales Tax 
revenue is projected to increase by 3.0 percent over projected actual FY 1998-99 
Sales Tax Revenue. Hotel Tax revenue is only projected to increase by 1.0 percent, 
reflecting lower rates of growth in Hotel Taxes that has been experienced for FY 
1998-99. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

7 



Memo to Finance and Labor Committee 
June 11, 1999 



The Budget Analyst notes that Real Property Transfer Tax Revenue is 
budgeted at $42,000,000 for FY 1999-2000, the same amount budgeted for FY 1998- 
99, despite the fact that actual revenues for"FY 1998-99 are now projected by the 
Controller to reach $54,000,000. The budgeted amount of $42,000,000 reflects the 
Joint Report's assumption that budget estimates for Real Property Transfer Tax 
Revenue should be conservative, given its volatile nature and history of wide 
fluctuations, which is dependent on large commercial and, to a lesser extent, 
residential real estate sales. 

Lastly, General Fund revenues include a one-time revenue of $5,500,000, 
representing a portion of the Bank of America settlement obtained by the City 
during the current 1998-99 Fiscal Year. The full amount of the settlement was 
$7,500,000, however the Mayor's Recommended budget has included a lump sum 
project appropriation of $2,000,000 in the FY 1999-2000 recommended budget of the 
City Attorney. The Budget Analyst has recommended deletion of the $2,000,000 
project appropriation in the City Attorney's budget. 

Contribution Transfers to the General Fund from the Airport Annual Scn'ice Payment and 
Hetch Hetchy Surplus Revenues 

The General Fund receives an Annual Service Payment each year from the 
San Francisco International Airport based on concession sales. In FY 1998-99, the 
City repaid the remaining balance of the $25.0 million Airport advance to the 
General Fund. This early full repayment reduced the FY 1998-99 Annual Service 
Payment to the General Fund from the Airport to $10,953,550. However, with the 
repayment of the Airport advance, the City's General Fund will now receive the full 
amount of all future Airport Annual Service Payments to the General Fund. 
Therefore, the March 3, 1999 Joint Report projected that the revenue transfer from 
the San Francisco International Airport to the General Fund will increase by a full 
$13.0 million, to a total of $24,000,000 in FY 1999-2000. 

The March 3, 1999 Joint Report did not estimate any change to the General 
Fund Contribution Transfer from Hetch Hetchy Surplus Revenues. The Hetch 
Hetchy Contribution Transfer to the General Fund has decreased by $2,853,273 
from the FY 1998-99 amount. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

8 



Memo to Finance and Labor Committee 
June 11, 1999 



The table below summarizes the Contribution Transfers to the General Fund. 

FY 1999-200 
FY 1998-99 Recommended Increase 
Contribution Transfer Original Budget Budget (Decrease) 

Airport Annual Service 5 10,953,550 $24,000,000 $13,046,450 

Payment 
Hetch Hetchy Surplus 

Revenue Transfer 42.703.273 39.850.000 (2.853.273) 

Totals $ 53,656,823 $ 63,850,000 $10,193,177 

Changes to Department of telecommunications and 
Information Services Charges for Services 

The Department of Telecommunications and Information Services (DTIS) 
budget is funded by a combination of charges to City Departments for DTIS services 
(i.e., Work Order Recoveries) and General Fund support. During FY 1998-99, DTIS 
conducted a rate study to review its charges and the method of distributing its 
direct and overhead costs to City Departments. The rate study resulted in a 
restructuring of DTIS Work Order Recover} 7 rates, increasing Work Order 
Recoveries from most City Departments. In addition, the Mayor's Recommended 
budget includes approximately $7.1 million in new DTIS charges for services 
provided by DTIS in support of the new 911 Emergency Command Center. The 
charges for DTIS services provided to the 911 Emergency Command Center are 
divided between the Police Department, the Fire Department and the Emergency 
Communications Department, and therefore represent a new General Fund cost. 

According to an analysis provided by the Controller at the request of the 
Budget Analyst, the restructuring of DTIS Work Order Recovery rates resulted in a 
shift of approximately $2.6 million in baseline DTIS costs from General Fund and 
General Fund Supported Departments to self-supporting departments such as the 
Airport. However, the new DTIS charges for the 911 Emergency Command Center 
of $7.1 million, which is a new General Fund cost, offsets the $2.6 million savings to 
the General Fund from the rate restructuring. 

The net impact on the General Fund is therefore an increased cost of $4.5 
million annually (the $7.1 new General Fund cost for DTIS sendees for the new 911 
Emergenc3 r Command Center less the $2.6 million General Fund cost reduction due 
to the restructuring of DTIS Work Order Recovery rates). 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

9 



Memo to Finance and Labor Committee 
June 11, 1999 



UNDERFUNDED ITEMS 



In past Fiscal Years, the Budget Analyst has reported to the Board of 
Supervisors that certain General Fund expenditures in the Mayor's recommended 
budget have been significantly underbudgeted. Typically, such items include Police 
Overtime and Workers Compensation. In FY 1998-99, the Police Department has 
exceeded its overtime budget by an estimated $1,000,000 according to the 
Controller's latest expenditure projections. This overexpenditure has been offset by 
salary and fringe benefit savings. For the FY 1999-2000 budget, the Mayor has 
recommended no increase m the General Fund Police Overtime budget of 
$11,104,205. Based on current year spending therefore. Police Overtime may be 
underbudgeted by $1,000,000. The actual amount of Police Overtime needed in 
excess of the annual budget appropriation will depend largely on the level of special 
event coverage required of the SFPD. According to Mr. Hymel, the Mayor's Office 
believes that Police Overtime will be adequately funded at current levels based on 
recent expenditure trends that show declining expenditures for Police Overtime. 

The Controller's Nine-Month budget status report estimated a General Fund 
deficit in Workers Compensation amounting to approximately $4,875,000. The 
Budget Analyst has reviewed the Mayor's Recommended FY" 1999-2000 budget for 
the adequacy of Workers Compensation budgeted expenditures. We have found that 
the Mayor's Recommended budget has increased budgeted expenditures for Workers 
Compensation in General Fund and General Fund supported departments to levels 
that approximate current year spending levels. However, the Budget Analyst notes 
that amounts for Workers Compensation expenditures in the Mayor's 
Recommended Budget do not allow for growth in spending over the current 1998-99 
Fiscal Year. The percentage increase between FY 1997-98 actual Workers 
Compensation expenditures and the Controller's projected FY 1998-99 expenditures 
is 14.5 percent. 

According to Mr. Hymel, the Mayor has announced budgetary incentives for 
controlling Workers Compensation costs. Departments who expend less than their 
FY 1999-2000 budget for Workers Compensation will be allowed to "re-program" 
such savings for other Departmental spending priorities. In addition, a the Mayor's 
Workers Compensation Council (comprised of the Controller, the Director of Human 
Resources, the General Manager of the Employees Retirement System and Mr. 
Hymel) will be commissioning a study, using unspent prior year project funds, to 
improve Workers Compensation claims management efficiency and develop 
improved management information reports. 

However, if FY 1999-2000 Workers Compensation expenditures increase by 
14.5 percent, which is the percentage increase projected by the Controller to occur 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

10 



Memo to Finance and Labor Committee 
June 11, 1999 



in FY 1998-99 over FY 1997-98, the Mayor's Recommended FY 1999-2000 budget 
for Workers Compensation expenditures will be underfunded by approximately 
$7,200,000. 

Budget Analyst Recommendations 

Over the next two weeks, the Budget Analyst will be presenting 
recommendations to reduce expenditures in the Mayor's recommended FY 1999- 
2000 budget without reducing services below current levels. For example, the 
Budget Analyst has found that many City Departments are now requesting upward 
substitutions of new positions for existing positions, resulting in increased salary 
and fringe benefit costs. Based on the fact that such substitutions were made during 
previous years without budgetary approval by the Board of Supervisors, the Budget 
Analyst will recommend, where appropriate, increased attrition savings to enable 
the Department to continue to maintain the existing filled positions, at the higher 
salary and fringe benefit cost, but eliminate increased expenditures as a result of 
such a substitution of positions. 

Significant recommendations will be presented for the following City 
Departmental budgets to be considered by the Finance and Labor Committee at its 
meeting of June 15, 1999, with various other recommended reductions to be 
reported subsequent to the issuance of this report: 

Budget Analyst's Recommended 
Department Expenditure Reductions 

Administrative Services $ 1,136,332 

City Attorney 3,044,212 

City Planning 541,538 

Trial Courts* 306,920 

District Attorney 648,502 

Sheriff 549,547 

Police 2,873,634 

Fire 2.922.850 



Total $12,023,535 

The budget of the Trial Courts is not subject to i eview by the Mayor. Only the 
Board of Supervisors can reduce the budget of the Trial Courts. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

11 



Memo to Finance and Labor Committee 
June 11, 1999 



The recommendations of the Budget Analyst are subject to change over the 
next two weeks based on new information provided by City Departments. 

The results of the Budget Analyst's review are detailed in three separate 
reports to the Finance and Labor Committee. Each report contains the 
recommendations of the Budget Analyst, along with explanations supporting those 
recommendations. These reports are as follows: 

• General Administration and Finance and Public Protection (June 15, 
1999, 1:00 p.m.) 

• Culture and Recreation and Public Works, Transportation and Commerce 
(June 16, 1999, 1:00 p.m.) 

• Human Welfare, Community Health - Department of Public Health, 
General City Responsibilities and Capital Projects (June 17, 1999, 1:00 
p.m.) 




cc: Supervisor Yee 
Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

12 




City and County of San Francisco city Han 

J J 1 Dr. Carlton B. 

Meeting Minutes ooodiett piace 

° -V San Francisco, CA 

^Finance and Labor Committee 94102-1689 

Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano 

m>*\ «, 13 j 3.H Clerk: Mary Red 

1 

Tuesday, June 15, 1999 1:00 PM City Hall, Room 263 

Departmental Budget Hearings 

Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 

The meeting convened at 1 : 1 1 p.m. 



DOCUMENTS DEPT. 

JUL 7 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 



City and County of San Francisco 



Printed at .1:14 P\i on 6/29/99 



Finance and Labor Committee Meeting Minutes June 15, 1999 



991065 (Budget, 1999-2000| 

Hearing to consider 1999-2000 Budget. 

General Administration and Finance 

Administrative Services (ADM) 

Convention Facilities Management (CFM) 

Elections (REG) 

Mayor (MYR) 

Children, Youth & Families (CHI i 

Business & Economic Development (IX'N) 

Environment (ENV) 

Board of Supervisors (BOS) 

Ethics Commission (ETH) 

City Attorney (CAT) 

Treasurer/Tax Collector! I I X i 

Controller (I <>\) 

Assessor/Recorder ( ASR) 

City Planning (CPC) 

Board of Appeals (I' AB I 

Rent Arbitration Board ( RMl 

Civil Service Commission (CSC) 

Human Resources (HRD) 

Retirement System (RET) 

Public Protection 

Trial Courts (CRD 

Juvenile Probation ( JUV) 

Law Library (LLB) 

County Agriculture Weights & Measures ( A( »W i 

Coroner (CME) 

Animal Care and Control (AM. i 

Public Administrator Guardian (PAG) 

District Attorney (DAT) 

Public Defender (PDR) 

Sheriff (SHF) 

Adult Probation (ADP) 

Fire Department (FIR) 

Police (POL) 

6/1/99, RECEIVED AND ASSIGNED lo Finance and Labor Commillcc 



City and County of San Francisco 2 Printed at 3:14 PM on «:««» 



Finance and Labor Committee Meeting Minutes June 15, 1999 

Heard in Committee. Speakers: Supervisor Yee; Harvey Rose. Budget Analyst; Supervisor Ammiano; Mathew 
Hymel, Mayor's Office; Ed Harrington, Controller; Supervisor Bierman. Department representatives: Steve 
Nelson, Administrative Services; Ed Lee, Director, Purchasing; John Marks, Convention Facilities 
Management; Naomi Nishioka, Acting Director, Elections; Deborah Alverez, Director, Department of 
Children, Youth & Families; Monique Moyer, Mayor's Office. Ann Marie Conroy, Director. Treasure Island; 
Francesca Vietor, Director, Department of Environment; Gloria Young, Clerk of the Board; Ginny Vida, 
Director, Ethics Commission; Louise Renne, City Attorney; Susan Leal, Treasurer; Richard Sullivan, Tax 
Collector; Tommie Whitlow, Assistant Assessor; Gerald Green, Director of Planning; Robert Feldman, Board 
of Appeals; Joe Grubb, Executive Director, Rent Arbitration Board; Kate Favetti, Executive Officer, Civil 
Service Commission; Andrea Gourdine, Director, Human Resources; Claire Murphy, General Manager, 
Retirement System; Alan Carlson, Trial Courts; Jessie Williams, Chief Probation Officer, Juvenile Probation; 
Marsha Bell. Librarian, Law Library; David Frieders, Commissioner of Agriculture/Weights & Measures; Dr. 
Boyd Stevens, Medical Examiner; Carl Friedman, Director, Animal Care and Control; Ricardo Hernandez, 
Public Administrator/Public Guardian; Terence Hallinan, District Attorney; Jeff Brown, Public Defender; 
Michael Hennessey, Sheriff; Armando Cervantes. Chief Probation Officer, Adult Probation; Robert Demmons. 
Chief, Fire Department; Ernie Prindel. Budget Analyst office; Ken Bruce, Budget Analyst office; Fred Lau, 
Chief, Police Department. Public: Larry Latimore. POWER; Jake McCulder. Continued to June 16, 1999. 
CONTINUED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



ADJOURNMENT 

The meeting adjourned at 6:00 p.m. 



City and County of San Francisco 3 Printed at 3:14 PM 




City and County of San Francisco 

Meeting Minutes 

Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B. 

Goodlett Place 

San Francisco, CA 

94102^689 



Wednesday, June 16, 1999 



1:00 PM 
Departmental Budget Hearings 



City Hall, Room 263 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 

The meeting convened at 1:09 p.m. 

991154 [Bond Award, School and Zoo Facilities] 
Mayor 

Draft motion awarding bonds and fixing definitive interest rates for S20,395,0O0 General Obligation Bonds 

(Educational Facilities Bonds, 1997 - Community College District), Series 1999A; $60,520,000 General 

Obligation Bonds (Educational Facilities Bonds, 1997 - San Francisco Unified School District), Series 1999B; 

$16,845,000 General Obligation Bonds (Zoo Facilities Bonds, 1997), Series 1999C. 

6/7/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. Request it be considered at the June 16, 1999 meeting. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst: Laura Opsahl. Mayor's Office of Public 

Finance: Supervisor Yee; Aaron Peskin. This motion does not have to go to the full Board. 

AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE. 

Motion awarding bonds and fixing definitive interest rates for $20,395,000 General Obligation Bonds 

(Educational Facilities Bonds, 1997 - Community College District), Series 1999A; $60,520,000 General 

Obligation Bonds (Educational Facilities Bonds, 1997 - San Francisco Unified School District), Senes 1999B; 

$16,845,000 General Obligation Bonds (Zoo Facilities Bonds, 1997), Series 1999C. 

AWARDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 4:15 PM on 6S29M 



Finance and Labor Committee Meeting Minutes June 16, 1999 

Heard in Committee. Speakers: Har\'ey Rose, Budget Analyst; Robert Jenkins, Director. Steinhart Aquarium. 
Academy of Sciences; Supervisor Yee; Ken Bruce, Budget Analyst 's office; Rich Newirth, Director. Art 
Commission; Beth Murray, Managing Director, War Memorial; Steve Dykes, Director of Administrations, 
Fine Arts Museum; Dede Wilsey; President Fine Arts Commission; Emily Sano, Director, Asian Art Museum; 
Supervisor Bierman; Susan Hildreth. Deputy City Librarian, Public Library; Joel Robinson, Acting General 
Manager, Recreation and Park; Mark Carlson. Deputy Director. Public Works; Frank Chiu. Director, 
Department of Building Inspection; John Martin, Director, Airport; Doug Wong. Executive Director. Port; 
Stuart Sunshine. Director, Parking and Traffic Department; Julia Dawson. Finance, DPT; Julia Friedlander. 
Acting Director Telecommunications & Information Services; Mike Martin. Acting Director. Emergency 
Communications Department; Andy Moran. General Manager, Public Utilities Commission; Michael Burns, 
General Manager, Municipal Railway; Jim Morales, Director, Redevelopment Agency; Rudy Alverez, Finance 
Director, Unified School District. Public: Janan New, Executive Director S.F. Apartment Association; Betsy 
Thager; Carol Kocivar. PTA; Leah Shahum; Marvis Phillips; Brad; Matt Brown, St. Peters Housing; Jung 
Kwok Ching; Mr. Guo, Chinese Progressive Association; Shuang Kuang; Jin Chi Zhso. Continued to June 1 7, 
1999. 

CONTINUED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991123 |PUC-Hetch Hetchy Fund Surplus] 

Resolution concurring with the Public Utilities Commission's fact finding that a fund surplus (539,850,000) 
exists in the utilities which can be transferred to the General Fund. (Controller) 
6/2/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Yee; Supervisor Ammiano. 
Opposed: Joan Girardot. Coalition for S.F. Neighborhoods; Mary McAfee; Rebecca SHverberg. In Support: 
Marvis Phillips. 

RECOMMENDED by the following vote: 
Ayes: 3 - Ammiano, Yee, Bierman 



991 148 [Redevelopment Interim Budget. Fiscal Year 1999-2000] 
Supervisor Yee 

Resolution approving an Interim Budget of the Redevelopment Agency of the City and County of San 
Francisco for Fiscal Year 1999-2000. 

(Fiscal impact.) 

6/7/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Havey Rose. Budget Analyst. 
RECOMMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



ADJOURNMENT 



The meeting adjourned at 4:54 p.m. 



City and County of San Francisco 3 Print '< i <" *« ™ <"> A - ■ » 



Finance and Labor Committee Meeting Minutes June It,. 1999 



991065 |Budget, 1999-2000| 

Hearing to consider 1999-2000 Budget. 

Culture and Recreation 

County Education Office (USD) 

Academy of Sciences (SCI) 

Art Commission (ART) 

War Memorial (WAR) 

Fine Arts Museums (FAM) 

Asian Art Museum (AAM) 

Public Library (LIB) 

Recreation and Park Commission (REC) 

Public Works, Transportation and Commerce 

Public Works (DPW) 

Building Inspection (DBI) 

Airport (AIR) 

Port (PRT) 

Parking and Traffic (PTC) 

Telecommunications & Information Services (TIS) 

Emergency Communications Department ( LCD) 

Public Utilities Commission (PI 

Light, Heat and Power (LHP) 

Hetch Hetchy Project (HHP) 

Water (WTR) 

Clean Water (CWP) 

Public Transportation - Municipal Railway (DPI i 

San Francisco Redevelopment Agency 

6/1/99, RECEIVED AND ASSIGNED lo Finance and Labor Committee 

6/15/99, CONTINUED Heard in Committee Speakers Supervisor Vcc. Ilar\e> Rote, Budget Analyst; Supervisor Ammiano, Mathcw 

Hymel, Mayor's Office; Ed Harrington. Controller; Supervisor Bicrman Department representatives Steve Nelson, Administrative 

Services; Id I ee, Director, Purchasing; John Marks. Convention Facilities Management, Naomi Nishioka, Acting Director. Elections. 

Deborah Alverez, Director, Department of Children, Youth & Families. Moniquc Mover. Mayor*! < ifficc. Ann Mane Conroy, Director, 

Treasure Island. Franceses Victor. Director, Department of Environment. Gloria Young, Clerk of the Board. Ginnv Vida. Director, 

Ethics Commission; Louise Renne. C'nv Attorney . Susan I eal, treasurer. Richard Sullivan. Tax Collector. Tommic Whitlow. Assistant 

Assessor; Gerald Green, Director of Planning; Robert Feldman. Hoard of Appeals. Joe (iruhb. Executive Director. Rent Arbitration 

Board; Kale Favetri, Executive Officer. Civ il Sen ice Commission; Andrea Gourdine, Director. Human Resources. Claire Murphv. 

General Manager, Retirement System. Alan Carlson, Trial Courts. Jessie Williams. Chief Probation Officer. Juvenile Probation. Marsha 

Bell, Librarian. Law Library; David Fneders. Commissioner of Agriculture Weights & Measures; Dr Boyd Stevens, Medical Examiner, 

Carl Friedman, Director, Animal Care and Control. Ricardo Hernandez. Public Administrator Public Guardian. Terence Hallinan. 

District Attorney; Jeff Brown, Public Defender. Michael Hennessey. Sheriff; Armando Cervantes. Chief Probation Officer, Adult 

Probation; Robert Demmons, Chief. Fire Department. Ernie Pnndcl. Budget Analyst office. Ken Bruce. Budget Analyst office. Fred 

Lau, Chief, Police Department Public: Larry Latimore, POWER. Jake McCulder Continued to June 16. 1999 



City and County of San Francisco 2 Printed at 4:15 PM on 6/19/99 



f 




Public Library, Gov't Information Ctr.. 5 th Fir. 
Attn: Susan Horn, Dept. 41 



CITY AND COUNTY WtMj&S/LlS) OF SAN FRANCISCO 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 

June 11, 199§0CUMENTS DEPT. 

TO: t Finance and Labor Committee jim j a «««« 

FROM: f Budget Analyst SAN FRANCISCO 

SUBJECT: June 16, 1999 Finance and Labor Committee Meeting 
Item 2 - File 99-1154 



p UBLIC LIBRARY 



Department: 
Item: 



Description: 



Mayor's Office of Finance 

Motion awarding bonds and fixing definitive 
interest rate for $20,935,000 General Obligation 
Bonds (Educational Facilities Bonds, 1997- 
Community College District) Series 1999A; 
$60,520,000 General Obligation Bonds 

(Educational Facilities Bonds, 1997- San Francisco 
Unified School District) Series 1999B, and 
$16,845,000 General Obligation Bonds (Zoo 
Facilities Bonds, 1997) Series 1999C. 

On June 3, 1997, the San Francisco voters 
approved the issuance of (1) $140 million of 
General Obligation Bonds, including $50 million for 
the Community College District and $90 million for 
the San Francisco Unified School District and (2) 
$48 million of General Obligation Bonds for the 
San Francisco Zoo. On March 1, 1999 the Board of 
Supervisors approved three resolutions authorizing 
and directing the sale of (1) not to exceed $23 
million of General Obligation Bonds for the 
Community College District (Educational 

Facilities Bonds, 1997, Series 1999A) (File 99- 



Memo to Finance and Labor Committee 

June 16, 1999 Finance and Labor Committee Meeting 



0197); (2) not to exceed $64 million of General 
Obligation Bonds for the San Francisco Unified 
School District (Educational Facilities Bonds, 1997, 
Series 1999B) (File 99-0200); and (3) not to exceed 
$18 million of General Obligation Bonds for the 
San Francisco Zoo ( Zoo Facilities Bonds, 1997, 
Series 1999C). 



Comments: 



Ms. Laura Opsahl of the Mayor's Office of Public 
Finance advises that the bids for the proposed 
bonds are scheduled to be opened at 8:00 am on 
Wednesday, June 16, 1999, and that unless all bids 
are rejected, the Finance and Labor Committee will 
be asked to award the bonds to the bidder whose 
bid represents the lowest true interest cost to the 
City. Ms. Opsahl reports that the Mayor's Office of 
Public Finance will submit an Amendment of the 
Whole to the Finance and Labor Committee's 
scheduled meeting on Wednesday, June 16, 1999, 
which will list the winning bidder, the other 
bidders and the interest rate that each bidder 
offered to the City. 



Recommendation: 



Approve a motion which awards the subject bonds 
to the low bidder, which represents the lowest true 
interest cost to the City. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

June 16, 1999 Finance Committee Meeting 



Item 3 - File 99-1123 
Departments: 

Item: 

Amount: 
Description: 



Public Utilities Commission (PUC) 

Hetch Hetchy Water and Power (Hetch Hetchy) 

Resolution concurring with the Public Utilities Commission's 
finding that Hetch Hetchy has a surplus which can be 
transferred to the City's General Fund. 

$39,850,000 

Requirements of Charter Section 16.103 

Charter Section 16.103(b)3 provides that the Public Utilities 
Commission, with the concurrence of two-thirds of the Board 
of Supervisors, may authorize the transfer of any portion of 
surplus funds to the General Fund upon making all of the 
following findings of fact and judgment: 

(A) That a surplus exists or is projected to exist after 
meeting the requirements of this section; 

(B) That there is no unfunded operating or capital 
program that by its lack of funding could jeopardize 
health, safety, water supply or power production; 

(C) That there is no reasonably foreseeable operating 
contingency that cannot be funded without General 
Fund subsidy (meaning that the unappropriated 
fund balance for the Hetch Hetchy operating fund 
is sufficient to meet any "reasonably foreseeable 
operating contingency"); and 

(D) That such a transfer of funds in all other respects 
reflects prudent utility practice. 

Resolution Adopted by PUC 

On June 8, 1999 the Public Utilities Commission adopted a 
resolution authorizing a transfer to the City's General Fund 
totaling $39,850,000 in FY 1999-2000 surplus Hetch Hetchy 
funds, in accordance with the provisions of Charter Section 
16.103. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

June 16, 1999 Finance Committee Meeting 

Comment: The proposed FY 1999-2000 budget, as recommended by the 

Mayor, is based on this proposed subject transfer of Hetch 
Hetchy revenues to the General Fund in the amount of 
$39,850,000, which is $2,853,273 less than the $42,703,273 
transfer for FY 1998-99. 

Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 16, 1999 Finance and Labor Committee Meeting 

Item 4 -File 99-1148 

1. Tbe proposed resolution would authorize an interim budget for the 
Redevelopment Agency for Fiscal Year 1999-2000. 

2. The proposed resolution approving an interim budget for the 
Redevelopment Agency, provides authority for the Redevelopment Agency to 
function under the State Community Redevelopment Law for the period from 
July 1. 1999 until the Redevelopment Agency's budget for FY 1999-2000 is 
finally approved by the Board of Supervisors, as required by Section 33606 of 
the State Redevelopment law. Approval of the proposed resolution would not 
constitute final approval of new positions, program expenditures, or Tax 
Increment Bonds for FY 1999-2000 for the Redevelopment Agency. 

3. As with the Interim Annual Appropriation Ordinance and Interim 
Annual Salary Ordinance approved by the Finance and Labor Committee on 
June 9, 1999 (Files 1087 and 1088) the interim budget for the Redevelopment 
Agency is based on the Fiscal Year 1999-2000 proposed budget 
recommendations of the Mayor. Hence, this resolution includes authorization 
and funding for all programs and program revisions which are included in the 
Mayor's proposed 1999-2000 budget. Each program and program revision 
will be reviewed in detail during the budget hearings and sessions which 
have been scheduled by the Finance and Labor Committee from June 15 
through June 24, 1999. 

4. As a general policy, in previous years, the Board of Supervisors has not 
approved new positions and programs during the interim budget period 
without detailed review. This general policy has been implemented by 
instructing the Controller not to certify the availability of funds for new 
positions, new programs or program expansions during the interim budget 
period between July 1 and July 31. If an exception is approved by the Board 
of Supervisors, new positions can be filled effective July 1. Otherwise, new- 
positions will generally not be filled until August 1 at the earliest. The 
Redevelopment Agency has not requested any exception to the interim 
budget for Fiscal Year 1999-2000. 

Recommendation 

Approve the proposed resolution authorizing an interim budget for the 
Redevelopment Agency for Fiscal Year 1999-2000. 



Board of Supervisors 
Budget Analyst 



Memo to Finance and Labor Committee 

June 16, 1999 Finance and Labor Committee Meeting 




Supervisor Yee 
Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



Board of Supervisors 
Budget Analyst 




City and County- of San Francisco aty Haii 

J 1 Dr. Carlton B. 

Meeting Minutes coodiett piace 

San Francisco, CA 

Finance and Labor Committee 94102^689 

Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano 

Clerk: Mary Red 

Thursday, June 17, 1999 1:00 PM City Hall, Room 263 

Departmental Budget Hearings 

Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 

The meeting convened at 1:04 p.m. 



City and County of San Francisco I Printed at f:09 PM on A? 9 VV 



Finance and Labor Committee Meeting Minuta June l~. I '999 



991065 |Budgct, 1999-2000| 

Hearing to consider 1999-2000 Budget. 

Human Welfare 

Commission on Aging (AGE) 
Human Rights Commission (HRC) 
Commission on the Status of Women ( WOM) 
Human Services (DHS) 

Community Health - Department of Public Health 

Community Health Network (HCN) 
Public Health (HPH) 

General City Responsibilities (GEN) 

Capital Projects (CAP) 

6/1/99, RECEIVED AND ASSIGNED to Finance and I abor Committee 

6/15/99, CONTINUED Heard in Committee Speakers Supervisor Yee; Harvey ROW, Budge! Analyst; Supervisor Ammiano. Mathcw 
llymel. Mayor's Office; Id Harrington. Controller. Supervisor Hierrrun Department rcprescnui Min, Administrative 

Services; Ed lee. Director. Purchasing, John Marks, Convention Facilities Management. Naomi Nishioka. Acting Director, I lections. 
Deborah Alverez, Director, Department of Children, Youth & Families, Moniquc M I ifficc. Ann Mane Conroy, Director, 

Treasure Island, Franccsca Vietor, Director, Department of Environment. Gloria Young, Clerk of the Hoard. tunny Vida, Director, 
Ethics Commission; Louise Renne, City Attorney, Susan I eal. treasurer. Richard Sullivan, lav Collector; Tommic Whitlow, Assistant 
Assessor, Gerald Green, Director of Planning. Robert Fcldman, Board of Appeals, Joe ( irubh. I vecutive Director. Rent Arbitration 
Board, Kate Favetti, Executive Officer, Civil Service Commission. Andrea Gourdine, Director. Human Resources. Claire Murphy, 
General Manager, Retirement System. Alan Carlson, I rial Courts. Jessie Williams. Chiel I er. Juvenile Probation, Marsha 

Bell, Librarian, Law Library, David Friedcrs. Commissioner of Agriculture Weights & Measure^ lis, Medical I xamincr. 

Carl Friedman, Director. Animal Care and Control; Ricardo Hernandez, Public Administrator Public Guardian, Terence Hallinan, 
District Attorney, JefT Brown, Public Defender; Michael Hem \rmando Ccr% antes. Chief Probation Officer, Adult 

Probation, Robert Demmons, Chief, Fire Department; Ernie Pnndel. Budget Analyst office; Ken Bruce. Budget Analyst olficc. Fred 
Lau, Chief, Police Department Public: Larry Latimore, POWER; Jake McCulder Continued to June 16, 1999. 
6/16/99, CONTINUED Heard in Committee Speakers llarvcv Rose. Budget Analyst; Robert Jenkins. Director, Stcinhart Aquanum. 
Academy of Sciences, Supervisor Yee, Ken Bruce. Budget Analyst's office; Rich Ncwirth. Director, Art Commission. Beth Murray, 
Managing Director, War Memorial. Steve Dykes, Director of Administrations, Fine Arts Museum, Dede Wilscy, President Fine Arts 
Commission, Emily Sano, Director, Asian Art Museum. Supervisor Bierman. Susan Hildrcth. Deputy Cttv librarian. Public Library. 
Joel Robinson, Acting General Manager, Recreation and Park, Mark Carlson. Deputy Director, Public Works. Frank Chiu, Director, 
Department of Building Inspection, John Martin, Director, Airport, Doug Wong, Executive Director, Port. Stuart Sunshine, Director, 
Parking and Traffic Department, Julia Dawson, Finance. DPT; Julia Fnedlander. Acting Director Telecommunications & Information 
Services, Mike Martin, Acting Director, Emergency Communications Department. Andy Moran. General Manager, Public Utilities 
Commission; Michael Bums. General Manager. Municipal Railway. Jim Morales, Director. Redevelopment Agencv, Rudy Alverez. 
Finance Director, Unified School District Public Janan New. Executive Director S.F. Apartment Association. Betsy Thager. Carol 
Kocivar., PTA; Leah Shahum, Mams Phillips. Brad; Matt Brown. St Peters Housing; Jung Kwok Ching. Mr Guo. Chinese Progressive 
Association; Shuang Kuang; Jin Chi Zhso Continued to June 17, 1999 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst: Dr Mitchell Katz, Director, Department of 
Public Health: Supervisor Yee: Supervisor Ammiano: Ed Harrington, Controller: David Ishtda. Executive 
Director, Commission on the Aging: Supervisor Bierman, Marivic Bamba. Executive Director. Human Rights 
Commission: Sonia Melara, Executive Director. Commission on Status of Women, Ken Bruce. Budget 
Analyst's Office: Will Lightbourne. Executive Director. Department of Human Services: Mathew Hymel. 
Mayors Office. Public: Gilbert Crisswell. Continued to June 19. 1999. 
CONTINUED. 



ADJOURNMENT 

The meeting adjourned at 2:29 p.m. 

City and County of San Francisco 2 Printed at 5:09 PM on 6/29M 




City and County of San Francisco aty Han 

J J 1 Dr. Carlton B 

Meeting Minutes Goodiett place 

San Francisco, CA 

Finance and Labor Committee 94102-4689 

Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano 

Clerk: Mary Red 

Saturday, June 19, 1999 9:00 AM Legislative Chamber, Room 250 

Budget Hearings, Public Testimony 

Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 

The meeting convened at 9:16 a.m. 



City and County of San Francisco I l'" n, ' J * "-" ' " "" 6/3a/ ^ 9 



Finance and Labor Committee Meeting Minuta June I'). I')')') 



991065 (Budget, 1999-2000| 

Hearing to consider 1999-2000 Budget. 

General Administration and Finance 

Administrative Services (ADM I 

Convention Facilities Management (11 Mi 

Elections (REG) 

Mayor (MYR) 

Children, Youth & Families (CHI | 

Business & Economic Development ( I < N) 

Environment (ENV) 

Board of Supervisors (BOS) 

Ethics Commission (ETH) 

City Attorney (CAT) 

Treasurer/Tax Collector) 1 I \ ) 

Controller (CON) 

Assessor/Recorder (ASR) 

City Planning (CPC) 

Board of Appeals (PAB) 

Rent Arbitration Board (R\ I i 

Civil Service Commission (CSC) 

Human Resources (HRD) 

Retirement System (RET) 

Public Protection 

Trial Courts (CRT) 

Juvenile Probation (JUV) 

Law Library (LLB) 

County Agriculture Weights & Measures (AGW) 

Coroner (CME) 

Animal Care and Control ( ANi i 

Public Administrator Guardian (PAG) 

District Attorney (DAT) 

Public Defender (PDR) 

Sheriff (SHF) 

Adult Probation (ADP) 

Fire Department (FIR) 

Police (POL) 

Culture and Recreation 

County Education Office (USD) 

Academy of Sciences (SCI) 

Art Commission (ART) 

War Memorial (WAR) 

Fine Arts Museums (FAM) 

Asian Art Museum ( AAM) 

Public Library (LIB) 

Recreation and Park Commission (REC) 

Public Works. Transportation and Commerce 

Public Works (DPW) 
Building Inspection (DBU 



City and County of San Francisco 2 Printed at 9.-4S A\f on 6.3&V9 



Finance and Labor Committee Meeting Minutes June 19, 1999 

Airport (AIR) 

Port (PRT) 

Parking and Traffic (PTC) 

Telecommunications & Information Services (TIS) 

Emergency Communications Department (ECD) 

Public Utilities Commission (PUC) 

Light, Heat and Power (LHP) 

Hetch Hetchy Project (HHP) 

Water (WTR) 

Clean Water (CWP) 

Public Transportation - Municipal Railway (DPT) 

San Francisco Redevelopment Agency 

Human Welfare 

Commission on Aging (AGE) 
Human Rights Commission (HRC) 
Commission on the Status of Women (WOM) 
Human Services (DHS) 

Community Health - Department of Public Health 

Community Health Network (HCN) 
Public Health (HPH) 

General City Responsibilities (GEN) 

Capital Projects (CAP) 

6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

6/15/99, CONTINUED Heard in Committee. Speakers: Supervisor Yee; Harvey Rose, Budget Analyst; Supervisor Ammiano; Mathew 
Hymel, Mayor's Office; Ed Harrington, Controller; Supervisor Bierman Department representatives: Steve Nelson, Administrative 
Services; Ed Lee, Director, Purchasing; John Marks, Convention Facilities Management; Naomi Nishioka, Acting Director, Elections; 
Deborah Alverez, Director, Department of Children, Youth & Families, Monique Moyer, Mayor's Office, Ann Marie Conroy, Director, 
Treasure Island, Francesca Vietor, Director, Department of Environment, Gloria Young. Clerk of the Board; Ginny Vida. Director. 
Ethics Commission; Louise Renne, City Attorney, Susan Leal, Treasurer; Richard Sullivan. Tax Collector, Tommie Whitlow, Assistant 
Assessor; Gerald Green, Director of Planning; Robert Feldman, Board of Appeals; Joe Grubb, Executive Director, Rent Arbitration 
Board; Kate Favetti, Executive Officer, Civil Service Commission; Andrea Gourdine, Director, Human Resources; Claire Murphy, 
General Manager, Retirement System, Alan Carlson, Trial Courts; Jessie Williams, Chief Probation Officer, Juvenile Probation, Marsha 
Bell, Librarian, Law Library; David Fneders, Commissioner of Agriculture/Weights & Measures; Dr. Boyd Stevens, Medical Examiner. 
Carl Friedman, Director, Animal Care and Control; Ricardo Hernandez, Public Administrator/Public Guardian; Terence Hallinan, 
District Attorney; Jeff Brown, Public Defender; Michael Hennessey, Sheriff; Armando Cervantes, Chief Probation Officer. Adult 
Probation; Robert Demmons, Chief, Fire Department; Ernie Prindel, Budget Analyst office; Ken Bruce, Budget Analyst office; Fred 
Lau, Chief, Police Department. Public: Larry Latimore, POWER; Jake McCulder. Continued to June 16. 1999. 
6/16/99, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Robert Jenkins, Director, Steinhart Aquarium. 
Academy of Sciences; Supervisor Yee; Ken Bruce, Budget Analyst's office, Rich Newirth, Director, Art Commission, Beth Murrav . 
Managing Director, War Memorial, Steve Dykes, Director of Administrations, Fine Arts Museum, Dede Wilsey, President Fine Arts 
Commission; Emily Sano, Director, Asian Art Museum; Supervisor Bierman; Susan Hildreth, Deputy City Librarian, Public Library. 
Joel Robinson, Acting General Manager, Recreation and Park, Mark Carlson, Deputy Director, Public Works; Frank Chiu, Director. 
Department of Building Inspection; John Martin, Director, Airport; Doug Wong, Executive Director, Port; Stuart Sunshine, Director. 
Parking and Traffic Department; Julia Dawson, Finance, DPT, Julia Fnedlander. Acting Director Telecommunications & Information 
Services; Mike Martin, Acting Director, Emergency Communications Department, Andy Moran, General Manager, Public Utilities 
Commission; Michael Bums, General Manager, Municipal Railway; Jim Morales, Director, Redevelopment Agency; Rudy Alverez, 
Finance Director, Unified School District Public: Janan New, Executive Director ST. Apartment Association; Betsy Thager, Carol 
Kocivar , PTA; Leah Shahum, Mams Phillips, Brad. Matt Brown, St Peters Housing, Jung Kwok Ching, Mr Guo, Chinese Progressive 
Association; Shuang Kuang, Jin Chi Zhso. Continued to June 17. 1999. 

6/17/99, CONTINUED. Heard in Committee Speakers Harvey Rose, Budget Analyst; Dr Mitchell Kat/. Director. Department o( 
Public Health; Supervisor Yee; Supervisor Ammiano; lid Harrington, Controller; David lshida. Executive Director, Commission on the 
Aging, Supervisor Bierman, Manvic Bamba, Executive Director. Human Rights Commission. Soma Melara. Executive Director. 
Commission on Status of Women. Ken Bruce. Budget Analyst's Office. Will Lightboumc. Executive Director, Department of Human 
Services, Mathew Hymel, Mayors Office Public Gilbert Crisswell Continued to June 19, 1999 



City and County of San Francisco 3 Printed at 9:45 AM on 63W9 



Finance and Labor Committee Meeting Minutes June I 'K 1999 

Heard in Committee Speakers Supervisor Ycc. Joe Lai ey, Home Rich. North oj Market Senior I 
Tom Phillips; Harry Goldfinger. Golden Gate Senior Services; Dorinda Otte) < I SE, Jim Mick. Coalition for 
Aging; Nick Lederer. Golden Gate Senior Services, Arthur Jackson. Richard Oow, Coalition on Homelessness 
(COH); Rebecca Graff, COH; Sarah Short. COH; Rosemary I huh. (Oil Robert Haaland COH 
Wooding, COH; Judy Appel. Staff Attorney. COH. Mara Raider (OH Shannon Keyton Attorney COH, Mary 
Kate Connors, Police Crisis Intervention Program. Darren Lewis. (Oil. Matt Brown, St Peters Housing, Ron 
Periz, Treatment on Demand Council. Jason Albertson, Jennifer Friedenbach, COH, Rebecca Vilkersen, 
CURE. COH; Dorothy Norman; Carta Amader. La Raza Centro. Mark Stanford, Local 535, I alone I illela. 
Victor Santis, 30th Street Senior Services. Frances Hums. David Drabblo, Paramedic. Fire Department. John 
Frank; Dale Butler; Lonnie Ruth Slunskv. Jim Keck. l.arn BradshoM Dennis ( base Wanes Project, Yvonne 
Kirols. Citizens In Action For Personal Assistance. Mitch Jesench. Independent Living Center, J Murray 
Fox, Legion of Honor Museum; Ernestine Weiss, Kathv Wolfe, Richard Rothman Hob Planthold Man Ruth 
Gross; Jonna Ramey. St. Mary's Park Improvement Club. Marvbeth Wallace, Coleman Advocates. Man 
Harris; Garrett Jenkins, North of Market Planning Coalition. Laverne Hawkins Coleman Advocates; Tom 
Nolan, Executive Director Project Open Hand. Carolyn Galbreat, Randall Museum. Karen Crommie, Friends 
of City Planning; Romona Albright. Friends of City Planning, Gilda Serrano Parent Advocate Richard 
Hanlin; Joan Pier son. Parent Advocate, Lanora Hamilton, Aaron Peslin, Gerry Crowley, Telegraph Hill 
Dwellers; Jamie Motley, Walenherg High School; R Jamal. Youth Making a Change; Ta/ James. Coleman 
Advocates for Children; Herbert Aliga, ShireenLee, Dr Christina Ma. Pediatrician, UCSF, Mane Ciepiela. 
OMI/Excelsior Beacon Center, Naz Johnson, Balboa High School. Dillion Scott. Balboa High School. I • 
Hobson. S.F. Tomorrow; Emanuel Smith. Marcia Fornlla. Health Nurse, Balboa High .Si hool, Ann And* 
Council of Neighborhood Librianes. Vera Hade, Susan Mara Scott Elsishans, Shanti Project, Dunne Poe. 
Black Coalition on AIDS; Female. La Raza. Female Health Services for the Disabled Margaret Jereme, 
Association for Education of Children. Female. Family ChUdcare Provider Western Addition; Judion Baker 
South of Market ChUdcare, Maureen Carew, Amy Stukdls. teacher. South Of Market Center, Female. Health 
Services, Children with Disabilities; David McGuire. Hill Sorro. Tessie Topal, Jewish Family Children 
Services; Camilla Ng; Winnie Yu, Parrel! Poe. Native American AIDS Project, Michael Sanders Mark 
Foreman; John Garcia; Perasha Zand. Nurse. Native American AIDS Protect Martin Wakatu, Din 
Native American AIDS Project; Mabel Seto. ChUdcare provider. Jamie Huang ChUdcare worker Merry 
Fowler, Moscone Park Playground. Sue Chang. Director. Moscone Park Playground, Nancy Ho, Amy Yam 
W'ai Yee. Qum Meika. Lisa Chan. Carol Sletman. Library Commissioner. Barbara Berman. Friends of 
Library; Vas Prabhu. Director of Education. DeYoung Museum. Man Pat Cress. Chen! Bancroft. Autumn 
Payne; Marvin Melchor Bustamonte, Public Health. San Francisco General Hospital (SFGH); Neil Gendel. 
Maria Luz Torres; Tracey Faulkner; Nora Roman, nurse. SFGH, Man Brown. Adhdalla Megahed. Mission 
Rock Shelter; Janie Hanagan; Jim Hartman. De Young Museum. Joe Wilson. Coleman Advocates. Stan Kean 
Reuben Goodman; Bruce. American Institute of Architects. Pauline Lo. M Ho. Family Network, Mrs Zhu; 
Ma Jin; Amozr Lam; Mrs. Wong; Mrs Lee; Ma Ho; Celia Siason; Emily Sauto; Carmen Maldonad 
Dawson, Director. Randall Museum; Jaho Oschenvhz. Local 790; Iris Biblowitz. RN; Elizabeth Kirchner. 
Ashbury Neighborhood Council; Linda Joseph. Local 535; Irma Penate, ChUdcare Provider. Mil hele Lundy. 
S.F. Family ChUdcare; Michael Lyon; SFGH. Walker Langston Dukes. SFGH. Geraldo Ramos. Circle of 
Care; Norman Telson. Executive Director. Filipino-American Council. Fern Ebeling. R\ Steve Currier. 
Excelsior Youth Center; Carolyn Washington. Bayview Sr Center. Steve Bingham. National Coalition for 
Youth; Leslie Ramos. Balboa High School. Rebecca Evans. Commission on the Environment. Anth 
Bafondess. We The People. Continued to June 22. 1999 
CONTINUED. 



ADJOURNMENT 

The meeting adjourned at 1:15 p.m. 



City and County of San Francisco 4 Printed at 9:4 S AM on 6/30/99 



x^^ Citv and Countv of San Francisco Cit > Hal1 

/v/Sfi^X \ Carlton B. 

( s f &#£&¥£ Meeting Minutes Goodiett piace 

l"L MK?~i& *M )■") San Francisco, CA 

ViStefS^ Finance and Labor Committee 94102-4689 

\£Fs~f~o5x Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano 

Clerk: Mary Red 

Tuesday, June 22, 1999 1:00 PM City Hall, Room 263 

Budget Review Hearings 

Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 

The meeting convened at 1:20 p.m. 



City and County of San Francisco I Printed at 11:44 AM on 6.10V9 



Finance and Labor Committee Meeting Minutes June 22, 1999 



991065 | Budget, 1999-20001 

Hearing to consider 1999-2000 Budget. 

General Administration and Finance 

Administrative Services (ADM) 

Convention Facilities Management (CFM) 

Elections (REG) 

Mayor (MYR) 

Children, Youth & Families (CHF) 

Business & Economic Development (ECN) 

Environment (ENV) 

Board of Supervisors (BOS) 

Ethics Commission ( ETI I ) 

City Attorney (CAT) 

Treasurer/Tax Collector! I I X | 

Controller (CON) 

Assessor/Recorder (ASR) 

City Planning (CPC) 

Board of Appeals (I' AH) 

Rent Arbitration Board (RNT) 

Civil Service Commission (CSl I 

Human Resources (HRD) 

Retirement System (RET) 

Public Protection 

Trial Courts (CRT) 

Juvenile Probation (JUV) 

Law Library (LLB) 

County Agriculture/Weights & Measures (AGW) 

Coroner (CME) 

Animal Care and Control (ANC) 

Public Administrator/Guardian (PAG) 

District Attorney (DAT) 

Public Defender (PDR) 

Sheriff (SHF) 

Adult Probation (ADP) 

Fire Department (FIR) 

Police (POL) 

6/1/99, RECEIVED AND ASSIGNED to Finance and 1 abor Committee 

6/15/99, CONTINUED Heard in Committee Speakers Supervisor Vec. Harvey Rose, Budget Analyst. Supervisor Ammiano. Mathew 

Hymel, Mayor's Office. Ed Harrington, Controller; Supervisor Bierman Department representatives Steve Nelson, Administrative 

Services; Ed Lee, Director, Purchasing; John Marks, Convention Facilities Management. Naomi Nishioka, Acting Director, Elections. 

Deborah Alverez, Director, Department of Children, Youth & Families, Monique Moyer, Mayor's Office, Ann Mane Conroy, Director, 

Treasure Island; Francesca Vietor, Director, Department of Environment. Gloria Young. Clerk of the Board. Ginnv Yida. Director. 

Ethics Commission; Louise Rcnne, City Attorney; Susan Leal, Treasurer, Richard Sullivan, Tax Collector. Tommie Whitlow, Assistant 

Assessor; Gerald Green, Director of Planning; Robert Feldman. Board of Appeals; Joe Grubb, Executive Director. Rent Arbitration 

Board; Kate Favetti. Executive Officer. Civil Service Commission. Andrea Gourdine. Director. Human Resources. Claire Murphy, 

General Manager, Retirement System; Alan Carlson, Trial Courts. Jessie Williams, Chief Probation Officer. Juvenile Probation. Marsha 

Bell, Librarian, Law Library, David Fneders. Commissioner of AgricullureAVeights & Measures. Dr Boyd Stevens. Medical Fxaminer. 

Carl Friedman, Director, Animal Care and Control; Ricardo Hernandez, Public Administrator Public Guardian. Terence Hallinan. 

District Attorney; Jeff Brown, Public Defender; Michael Hennessey, Sheriff; Armando Cervantes, Chief Probation Officer, Adult 

Probation; Robert Demmons, Chief. Fire Department, Ernie Pnndel, Budget Analyst office. Ken Bruce. Budget Analyst office, Fred 

Lau, Chief, Police Department Public: Larry Latimore. POWER; Jake McCulder Continued to June 16, 1999 



City and County of San Francisco 2 Printed at 11:44 AM on 6,30/99 



Finance and Labor Committee Meeting Minutes June 22, 1999 

6/16/99, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Robert Jenkins, Director, Steinhart Aquarium, 
Academy of Sciences; Supervisor Yee; Ken Bruce, Budget Analyst's office; Rich Newirth, Director, Art Commission; Beth Murray, 
Managing Director, War Memorial; Steve Dykes, Director of Administrations, Fine Arts Museum; Dede Wilsey, President Fine Arts 
Commission; Emily Sano, Director, Asian Art Museum; Supervisor Bierman; Susan Hildreth, Deputy City Librarian, Public Library; 
Joel Robinson, Acting General Manager, Recreation and Park; Mark Carlson, Deputy Director, Public Works; Frank Chiu, Director, 
Department of Building Inspection; John Martin, Director, Airport; Doug Wong, Executive Director, Port; Stuart Sunshine, Director, 
Parking and Traffic Department; Julia Dawson, Finance, DPT, Julia Friedlander, Acting Director Telecommunications & Information 
Services; Mike Martin, Acting Director, Emergency Communications Department; Andy Moran, General Manager, Public Utilities 
Commission; Michael Bums, General Manager, Municipal Railway; Jim Morales, Director, Redevelopment Agency; Rudy Alverez, 
Finance Director, Unified School District. Public: Janan New, Executive Director S.F. Apartment Association; Betsy Thager; Carol 
Kocivar., PTA; Leah Shahum; Marvis Phillips; Brad; Matt Brown, St. Peters Housing; Jung Kwok Ching; Mr. Guo, Chinese Progressive 
Association; Shuang Kuang; Jin Chi Zhso. Continued to June 17, 1999. 

6/17/99, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Dr Mitchell Katz, Director, Department of 
Public Health; Supervisor Yee; Supervisor Ammiano; Ed Harrington, Controller; David Ishida, Executive Director, Commission on the 
Aging; Supervisor Bierman; Marivic Bamba, Executive Director, Human Rights Commission; Sonia Melara, Executive Director, 
Commission on Status of Women; Ken Bruce, Budget Analyst's Office; Will Lightboume, Executive Director, Department of Human 
Services; Mathew Hymel, Mayors Office. Public: Gilbert Crisswell. Continued to June 19, 1999. 

6/19/99, CONTINUED. Heard in Committee. Speakers: Supervisor Yee; Joe Lacey; Bemie Rush, North of Market Senior Center; Tom 
Phillips; Harry Goldfinger, Golden Gate Senior Services, Dorinda Ottey, CASE; Jim Elick, Coalition for Aging; Nick Lederer, Golden 
Gate Senior Services, Arthur Jackson, Richard Oow, Coalition on Homelessness (COH); Rebecca Graff, COH; Sarah Short, COH; 
Rosemary Dady, COH; Robert Haaland, COH; Miguel Wooding, COH; Judy Appel, Staff Attorney, COH; Mara Raider, COH; Shannan 
Keyton, Attorney COH; Mary Kate Connors, Police Crisis Intervention Program. Darren Lewis, COH; Matt Brown, St Peters Housing; 
Ron Penz, Treatment on Demand Council, Jason Albertson; Jennifer Friedenbach, COH, Rebecca Vilkersen, CURE, COH; Dorothy 
Norman; Carla Amader, La Raza Centra; Mark Stanford, Local 535; Valorie Villela; Victor Santis, 30th Street Senior Services; Frances 
Bums; David Drabblo, Paramedic, Fire Department; John Frank; Dale Butler, Lonnie Ruth Slunsky; Jim Keck; Larry Bradshaw; Dennis 
Chase, Names Project; Yvonne Kirols, Citizens In Action For Personal Assistance; Mitch Jeserich, Independent Living Center; J. 
Murray Fox, Legion of Honor Museum; Ernestine Weiss; Kathy Wolfe; Richard Rothman; Bob Planthold; Mary Ruth Gross; Jonna 
Ramey, St. Mary's Park Improvement Club; Marybeth Wallace, Coleman Advocates; Mary Harris; Garrett Jenkins, North of Market 
Planning Coalition; Laverne Hawkins, Coleman Advocates; Tom Nolan, Executive Director Project Open Hand; Carolyn Galbreat, 
Randall Museum; Karen Crommie, Friends of City Planning; Romona Albright, Friends of City Planning; Gilda Serrano, Parent 
Advocates, Richard Hanlin; Joan Pierson, Parent Advocate; Lanora Hamilton; Aaron Peslin; Gerry Crowley, Telegraph Hill Dwellers; 
Jamie Motley, Walenberg High School; R. Jamal, Youth Making a Change; Taj James, Coleman Advocates for Children; Herbert Aliga; 
Shireen Lee; Dr. Christina Ma, Pediatrician, UCSF; Marie Ciepiela, OMI/E.xcelsior Beacon Center; Naz Johnson, Balboa High School; 
Dillion Scott, Balboa High School; Fred Hobson, S F. Tomorrow; Emanuel Smith; Marcia Forrilla, Health Nurse, Balboa High School; 
Ann Anderson, Council of Neighborhood Librianes; Vera Haile; Susan Mara; Scott Elsishans, Shanti Project; Duane Poe, Black 
Coalition on AIDS; Female, La Raza; Female, Health Services for the Disabled; Margaret Jereme, Association for Education of 
Children; Female, Family Childcare Provider, Western Addition; Judion Baker, South of Market Chi Idcare; Maureen Carew; Amy 
Stukills, teacher, South Of Market Center; Female, Health Services, Children with Disabilities; David McGuire; Bill Sorro; Tessie 
Topal, Jewish Family Children Services; Camilla Ng, Winnie Yu; Darrell Poe, Native American AIDS Project; Michael Sanders; Mark 
Foreman; John Garcia; Perasha Zond, Nurse, Native American AIDS Project; Martin Wakatu, Director, Native American AIDS Project; 
Mabel Seto, Childcare provider, Jamie Huang, Childcare worker. Merry Fowler, Moscone Park Playground; Sue Chang, Director, 
Moscone Park Playground; Nancy Ho, Amy Yam; Wai Yee; Qum Meika, Lisa Chan; Carol Steiman, Library Commissioner, Barbara 
Berman, Friends of Library; Vas Prabhu, Director of Education, De Young Museum, Mary Pat Cress; Cheryl Bancroft; Autumn Payne; 
Marvin Melchor Bustamonte, Public Health, San Francisco General Hospital (SFGH); Neil Gendel, Maria Luz Torres; Tracey Faulkner; 
Nora Roman, nurse, SFGH, Mary Brown; Adbdalla Megahed, Mission Rock Shelter; Janie Hanagan; Jim Hartman, De Young Museum; 
Joe Wilson, Coleman Advocates; Stan Kean; Reuben Goodman, Bruce, American Institute of Architects; Pauline Lo; M. Ho, Family 
Network; Mrs Zhu, Ma Jin; Amozr Lam, Mrs Wong; Mrs. Lee; Ma Ho, Celia Siason; Emily Sauto, Carmen Maldonado; Amy Dawson. 
Director, Randall Museum, Jaho Oscherwhz, Local 790; Iris Biblowitz, RN; Elizabeth Kirchner; Ashbury Neighborhood Council; Linda 
Joseph, Local 535; Irma Penate, Childcare Provider; Michele Lundy, S.F. Family Childcare; Michael Lyon; SFGH; Walker Langston 
Dukes, SFGH; Geraldo Ramos, Circle of Care, Norman Telson, Executive Director, Filipino-American Council; Fern Ebeling, RN; 
Steve Cumer, Excelsior Youth Center; Carolyn Washington, Bayview Sr. Center, Steve Bingham, National Coalition for Youth, Leslie 
Ramos, Balboa High School, Rebecca Evans, Commission on the Environment, Anthony Bafondess, We The People Continued to 
June 22, 1999. 



City and County of San Francisco 3 Printed at 1 1:44 AM on WJOsW 



Finance and Labor Committee Meeting Minutes June 22, 1999 

Heard in Committee. Speakers: Supen>isor Yee, Harvey Rose, Budget Analyst; Supervisor Ammtano, Mathcw 
Hymel, Mayor's Office; Ed Harrington, Controller; Supervisor Bierman Department representatives Stew 
Nelson, Administrative Services; Louise Renne. City Attorney , Susan Leal, Treasurer. Doris Ward. Assessor; 
Gerald Green, Director of Planning; Joe Grubb, Executive Director, Rent Arbitration Board. Andrea 
Gourdine, Director, Human Resources; Claire Murphy. General Manager, Retirement System, Alan Carlson. 
Trial Courts; Jessie Williams, Chief Probation Officer, David Frieders, Commissioner of Agriculture/Weights 
& Measures; Herbert Hawley. Administrator. Medical Examiner's (J/ln e, ( art Friedman Dire* tor. Animal 
Care and Control; Ricardo Hernandez, Public Administrator/Public Guardian, Terence Hallinan. District 
Attorney; Jeff Brown, Public Defender; Michael Hennessey. Sheriff Fred Brousseau, Budget Analyst's off 
Lee Sampson, Business Manager, Adult Probation. Robert Demmons, Chief, lire Department. Ernie Prindel. 
Budget Analyst office; Ken Bruce, Budget Analyst office, Debra Ward, Finaiu nil Offit er Fire Department. 
Fred Lau, Chief, Police Department. Public: Larry Latimore, POWER. Jake McCulder The Assessor and 
City Planning Department was continued to June 24, 1999. The meeting was continued to June 23. 1999 
CONTINUED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



ADJOURNMENT 

The meeting adjourned at 4:54 p m 



Cay and County of San Francisco 4 Printed at 11:44 AM on 6. 30.V9 



/0 S£i! ^ c \ City and County of San Francisco Cit y Ha11 

A/A— %— rN?A J J lDr Carlton B. 

fflj&Gz&W Meeting Minutes Goodiett piace 

[2 1 MSZi&gM liil San Francisco, CA 

v^fiSgy/' Finance and Labor Committee 94102^689 

x^Tj^x Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano 

Clerk: Mary Red 
Tuesday, June 22, 1999 5:30 PM City Hall, Room 263 

Special Budget Hearings, Public Testimony 
Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



The meeting time will be from 5:30 p.m. - 7:00 p.m. 
Meeting Convened 

The meeting convened at 5:40 p.m. 



City and County of San Francisco 1 Printed at hS9 PM on 630/99 



Finance and Labor Committee Meeting Minutes June 22, 1999 



991065 |Budget, 1999-2000] 

Hearing to consider 1999-2000 Budget. 

General Administration and Finance 

Administrative Services (ADM) 

Convention Facilities Management (CFM) 

Elections (REG) 

Mayor (MYR) 

Children, Youth & Families (CHI i 

Business & Economic Development (ECN) 

Environment (ENV) 

Board of Supervisors (BOS) 

Ethics Commission (ETH) 

City Attorney (CAT) 

Treasurer/Tax Collector(TTX) 

Controller (CON) 

Assessor/Recorder (ASR) 

City Planning (CPC) 

Board of Appeals (PAB) 

Rent Arbitration Board (RNT) 

Civil Service Commission (CSC) 

Human Resources (HRD) 

Retirement System (RET) 

Public Protection 

Trial Courts (CRT) 

Juvenile Probation (JUV) 

Law Library (LLB) 

County Agriculture/Weights & Measure i .V rW i 

Coroner (CME) 

Animal Care and Control (ANC) 

Public Administrator Guardian (PAG) 

District Attorney (DAT) 

Public Defender (PDR) 

Sheriff (SHF) 

Adult Probation (ADP) 

Fire Department (FIR) 

Police (POL) 

Culture and Recreation 

County Education Office (USD) 

Academy of Sciences (SCI) 

Art Commission (ART) 

War Memorial (WAR) 

Fine Arts Museums (FAM) 

Asian Art Museum (AAM) 

Public Library (LIB) 

Recreation and Park Commission (REC) 

Public Works, Transportation and Commerce 

Public Works (DPW) 
Building Inspection (DBI) 

City and County of San Francisco 2 Printed at 1:59 PM on 6/30/99 



Finance and Labor Committee Meeting Minutes June 22, 1999 

Airport (AIR) 

Port (PRT) 

Parking and Traffic (PTC) 

Telecommunications & Information Services (TIS) 

Emergency Communications Department (ECD) 

Public Utilities Commission (PUC) 

Light, Heat and Power (LHP) 

Hetch Hetchy Project (HHP) 

Water (WTR) 

Clean Water (CWP) 

Public Transportation - Municipal Railway (DPT) 

San Francisco Redevelopment Agency 

Human Welfare 

Commission on Aging (AGE) 
Human Rights Commission (HRC) 
Commission on the Status of Women (WOM) 
Human Services (DHS) 

Community Health - Department of Public Health 

Community Health Network (HCN) 
Public Health (HPH) 

General City Responsibilities (GEN) 

Capital Projects (CAP) 

6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

6/15/99, CONTINUED. Heard in Committee. Speakers: Supervisor Yee; Harvey Rose, Budget Analyst; Supervisor Ammiano, Mathew 
Hymel, Mayor's Office; Ed Harrington, Controller; Supervisor Bierman. Department representatives: Steve Nelson, Administrative 
Services; Ed Lee, Director, Purchasing; John Marks, Convention Facilities Management, Naomi Nishioka, Acting Director, Elections; 
Deborah Alverez, Director, Department of Children, Youth & Families; Monique Moyer, Mayor's Office, Ann Mane Conroy, Director, 
Treasure Island; Francesca Vietor, Director, Department of Environment; Gloria Young, Clerk of the Board; Ginny Vida, Director. 
Ethics Commission; Louise Renne, City Attorney; Susan Leal, Treasurer; Richard Sullivan, Tax Collector; Tommie Whitlow, Assistant 
Assessor; Gerald Green, Director of Planning; Robert Feldman. Board of Appeals; Joe Grubb, Executive Director, Rent Arbitration 
Board; Kate Favetti, Executive Officer, Civil Service Commission; Andrea Gourdine, Director, Human Resources; Claire Murphy. 
General Manager, Retirement System; Alan Carlson, Trial Courts; Jessie Williams, Chief Probation Officer. Juvenile Probation, Marsha 
Bell. Librarian, Law Library; David Frieders, Commissioner of Agriculture/Weights & Measures; Dr. Boyd Stevens, Medical Examiner. 
Carl Friedman, Director, Animal Care and Control; Ricardo Hernandez, Public Administrator Public Guardian; Terence Hallinan. 
District Attorney, Jeff Brown, Public Defender, Michael Hennessey, Sheriff; Armando Cervantes, Chief Probation Officer, Adult 
Probation; Robert Demmons, Chief, Fire Department; Ernie Pnndel, Budget Analyst office; Ken Bruce, Budget Analyst office; Fred 
Lau, Chief, Police Department. Public Larry Latimore, POWER, Jake McCulder. Continued to June 16, 1999. 
6/16/99, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Robert Jenkins, Director, Steinhart Aquarium, 
Academy of Sciences; Supervisor Yee, Ken Bruce, Budget Analyst's office; Rich Newirth, Director, Art Commission, Beth Murray, 
Managing Director, War Memorial, Steve Dykes, Director of Administrations, Fine Arts Museum; Dede Wilsey. President Fine Arts 
Commission, Emily Sano, Director, Asian Art Museum; Supervisor Bierman; Susan Hildreth. Deputy City I ibranan, Public Library; 
Joel Robinson, Acting General Manager, Recreation and Park, Mark Carlson, Deputy Director, Public Works; Frank Chiu. Director, 
Department of Building Inspection, John Martin, Director, Airport; Doug Wong. Executive Director, Port; Stuart Sunshine, Director, 
Parking and Traffic Department; Julia Dawson, Finance, DPT; Julia Fnedlander, Acting Director Telecommunications & Information 
Services; Mike Martin, Acting Director, Emergency Communications Department; Andy Moran, General Manager, Public Utilities 
Commission; Michael Bums, General Manager, Municipal Railway; Jim Morales, Director, Redevelopment Agency; Rud> Alverez, 
Finance Director, Unified School District. Public: Janan New, Executive Director S.F. Apartment Association; Betsy Thager; Carol 
Kocivar., PTA; Leah Shahum, Marvis Phillips; Brad, Matt Brown, St. Peters Housing; Jung Kwok Ching; Mr. Guo, Chinese Progre>si\c 
Association; Shuang Kuang; Jin Chi Zhso. Continued to June 17, 1999. 

6/17/99, CONTINUED. Heard in Committee Speakers: Harvey Rose, Budget Analyst; Dr Mitchell Katy. Director. Department of 
Public Health; Supervisor Yee, Supervisor Ammiano; Ed Harrington. Controller, l)a\ul Ishida, Executive Director, Commission on the 
Aging; Supervisor Bierman; Marivic Bamba, Executive Director, Human Rights Commission, Soma Melara. Executive Director, 
Commission on Status of Women, Ken Bruce, Budget Analyst's Office. Will Lightboume. Executive Director, Department of Human 
Services; Mathew Hymel, Mayors Office. Public: Gilbert Crisswell Continued to June 19, 1999. 



City and County of San Francisco J Printed at 1:59 PM on 63WV9 



Finance and Labor Committee Meeting Minutes June 22, 1999 

6/19/99, CONTINUED Heard in Committee Speakers: Supervisor Yee. Joe Lacey, Bcmic Rush. North of Market Senior Center, Tom 
Phillips, Hany Goldfinger, Golden Gale Senior Sen ices. Donnda Ottey, I ASI , Jim I lick, ( oalition lor Aging; Nick I cdercr. Golden 
Gate Senior Services; Arthur Jackson, Richard Oow, Coalition on Homelessncss (COH); Rebecca < >ral I. ( OH; Sarah shun. ( OH; 
Rosemary Dady, COH; Robert Haaland, COH, Miguel Wooding, COH, Judy Appcl. Staff Attorney, ( OH; Mara Raider. (Oil. Shannan 
Kcyton, Attorney COH; Mary Kate Connors, Police Crisis Intervention Program Darren Lewis, < Oil, Matt Hrimn. St Peters Housing. 
Ron Pcriz, Treatment on Demand Council, Jason Albcrtson, Jennifer Fricdcnbach. COH; Rebecca Vilkcrscn. CURE, COH; Dorothy 
Norman; Carla Amadcr, La Raza Centro, Mark Stanford, Local 535, V alone Villela. VidOl Santis. 30th Street Senior Services. I ranees 
Bums; David Drabblo, Paramedic, lire Department. John frank. Dale Butler; 1 onnie Ruth Slunsky. Jim Keck. I arry Bradshaw. Dennis 
Chase, Names Project, Yvonne Kirols, Citizens In Action lor Personal Assistance. Much Jesench, Independent Living Center, J 
Murray Fox, Legion of Honor Museum, Lmestine Weiss, Kathy Wolfe, Richard Rothman, Hob Planthold. Mary Ruth Gross. Jonna 
Ramey, St Mary's Park Improvement Club. Marybcth Wallace, Coleman Advocates, Mar, Hams. Garret) Jenkins. North of Market 
Planning Coalition, Laveme Hawkins, Coleman Advocates, lorn Nolan. I \ecuti\e Director Project Open Hand. Carolyn Galbrcat. 
Randall Museum; Karen Crommic, friends of City Planning, Romona Albright, Fncnds of City Planning, Gilda Serrano. Parent 
Advocates, Richard Hanlin, Joan Pierson, Parent Advocate, Lanora Hamilton, Aaron Peslm. ( ien ■ craph Hill Dwellers. 

Jamie Motley, Walenberg High School, R Jamal, Youth Making a Change. Taj James, Coleman Advocates for Children, Herbert Aliga. 
Shireen Lee, Dr Christina Ma. Pediatrician, UCSF, Mane Ciepiela. OMI Excelsior Beacon ( enter, Na/ Johnson. Balboa High School, 
Dillion Scott, Balboa High School, Fltd Hobson, S F Tomorrow, Fmanuel Smith. Marcia I omlla. Health Nurse. Balboa High School, 
Ann Anderson, Council of Neighborhood Libnancs, \ era llaile. Susan Mara. Scott ElsishaiU, Shanti Project. Duane Poe, Black 
Coalition on AIDS, Female, La Raza, Female, Health Services for the Disabled. Margaret Jereme, Association for I ducation of 
Children, Female, Family Childcare Provider, Western Addition. Judion Baker, South of Market Childcare; Maureen Carcw, Amy 
Stukills, teacher, South Of Market Center, Female, Health Services. Children with Disabilit lessic 

Topal, Jewish Family Children Services. ( amilla Ng. Winnie Yu. Darrcll Poe. Native Amencan AIDS Project. Michael Sanders. Mark 
Foreman; John Garcia; Perasha Zond. Nurse. Native American AIDS Project. Martin Wakalu. Director. Native Amencan AIDS Project. 
Mabel Seto, Childcare provider. Jamie Huang, Childcare worker. Men) 1 owler, Mosconc I'jrk Playground; Sue Chang, Director, 
Moscone Park Playground. Nancy Ho, Amy Yam, Wai Yee, Qum Meika. Lisa Chan. Carol Sleiman. I ihrary Commissioner. Barbara 
Berman, Fnends of Library, Vas Prabhu. Director of I ducation, Dc Young Museum, Mars Pat ( rcss. Cheryl Bancroft, Autumn Payne, 
Marvin Mclchor Bustamonte, Public Health. San Francisco General Hospital isl c ,11 1, Neil I lendel; Maria I uz Torres; Trace) Faulkner. 
Nora Roman, nurse, SFGH, Mary Brown, Adbdalla Megahed, Mission Rock Shelter; Janic Hanagan, Jim Hartman. Dc Young Museum, 
Joe Wilson. Coleman Advocates, Stan Kean. Reuben Goodman. Bruce, Amencan Institute of Architects. Pauline I 0; M Ho, I amily 
Network; Mrs Zhu, Ma Jin; Amozr Lam. Mrs Wong. Mrs Lee; Ma Ho; Celia Siason; I mil) Sauto; Carmen Maid jwson. 

Director, Randall Museum, Jaho Osehcrwhz, I ocal 790; Ins Biblowitz, RN. Elizabeth Kirchncr, Ashbury Ncighborhi>od Council. Linda 
Joseph, Local 535, Irma Penate. Childcare Provider, Michele I und>. S I Family Childca: H. Walker I angston 

Dukes, SFGH; Geraldo Ramos, Circle of Care. Norman Tclson. Executive Director. Fihpino-Amcncan Council. Fem Ebeli- 
Steve Currier, Excelsior Youth Center; Carolyn Washington, Bay view Sr t enter. Steve Bingham. National Coalition for Youth, Leslie 
Ramos, Balboa High School, Rebecca Evans, Commission on the Environment, Anthony Uafondcss. We The People Continued to 
June 22, 1999. 

Heard in Committee. Speakers Supervisors Yee. Bierman, Ammiano, Rebecca Villarson. Jennifer 

Friedenbach, Coalition on Homelessness (COH); Margaret Brodkm. Coleman Advocates, Stephen Bingham. 
National Center for Youth Law; Lana Berger. POWER. Karen Sherr; Rand Qutnn. V California Immigrant 
Rights Coalition; Roger Bazeleg, PTA; Sandra I anderpool, Guerrero House; David Graves. Kids-ln-Parks. 
Deane Shokes. Stonestown YMCA. Alexander Vaughan. Mission M/( I Art Tapia. Coleman Advocates. Sue 
Eisenberg. Self Help for the Elderly. Gerald dc Ryan. Deetje Boler; Zachary Wald. Bay Peas, Betsy Thaggard. 
WalkSF; Leah Shaholm. SF Bicycle Coalition (SFBC); Ken Kelton. Pedsate. Kathirene Soriano. Homeless 
Prenatal Program; James Morrison. WalkSF; Margaret Robbins, Manny Sunshine. I rban Elders Program. 
Emily Drennen, SFBC; Joshua Switsky; WalkSF, In Katuna. SF State L niversin. President Gamma; Robert 
Nash. POWER; Jon Winston; Martina Gillis. Darren Lewis. COH. Barbara Hughes. POWER. "Marlene." 
POWER; "Garth." POWER; Ed Ealing. POWER Roxanne Trade. POWER. Julia Greenfield. Lawyer* 
Committee for Civil Rights; Abdalla Megahed; Sue Cauthen. Sunshine Ordinance Task Force; David Pilpel. 
Rescue MUNI; Pauline Peel. Seniors Disability Advisory Council. Martha Bridegum. COH; John Bergman. 
POWER; Emma Harris. POWER; Michelle Michelson. Legal Aid Society . Ed Willard. POWER "Will B 
Paidwell" (pseudonym). POWER. Continued to June 2.1 1999 
CONTINUED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



ADJOURNMENT 

The meeting adjourned at 7:00 p.m 



City and County of San Francisco 4 Printed at 1:59 PM on 6,30*9 




City and County of San Francisco city Han 

J J 1 Dr. Carlton B 

Meeting Minutes Goodiett place 

San Francisco, CA 

Finance and Labor Committee 94102-4689 

Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano 

Clerk: Mary Red 

Wednesday, June 23, 1999 1 :00 PM City Hall, Room 263 

Budget Review Hearings 

Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 

The meeting convened at 1:09 p.m. 



City and County of San Francisco I Printed at 3:52 PM on 6/30/99 



Finance and Labor Committee Meeting Minttte\ June 23, 1999 



991065 |Budget, 1999-2000] 

Hearing to consider 1999-2000 Budget. 

Culture and Recreation 

County Education Office (USD) 

Academy of Sciences (SCI) 

Art Commission (ART) 

War Memorial (WAR) 

Fine Arts Museums (FAM) 

Asian Art Museum (AAM) 

Public Library (LIB) 

Recreation and Park Commission (REC) 

Public Works, Transportation and Commerce 

Public Works (DPW) 

Building Inspection (DH1) 

Airport (AIR) 

Port (PRT) 

Parking and Traffic (PTC) 

Telecommunications & Information Sen ices i TIS) 

Emergency Communications Department (ECD) 

Public Utilities Commission (PI ( ' i 

Light. Heat and Power (I IIP) 

Hetch Hetchy Project (HIIPi 

Water (WTR) 

Clean Water (CWP) 

Public Transportation - Municipal Railway (DP I i 

San Francisco Redevelopment Agency 

6 1 99. RECEIVED AND ASSIGNED to Finance and Labor Commmcc 

6/15/99, CONTINUED Heard in C o m mi tt e e, Speakers Supervisor: Yee; Harve) Rose, Budget Analyst. Supervisor Ammiano. Mathcu 

Hymel, Mayor's Office, Ed Harrington. Controller, Supervisor Bierman Department representatives Mc\c Vclson, Administrative 

Services; Ed Lee, Director, Purchasing. John Marks, Convention Facilities Management, Naomi Nishioka. Acting Director. Elections. 

Deborah Alvcrez, Director, Department of Children. Youth & Families; Moniquc '■' I Iffice, Ann Mane Camay, Director. 

Treasure Island. Franceses Victor. Director, Department of Environment, Gloria Young, Clerk of the Board. Ginny Vida. Director, 

Ethics Commission. Louise Renne. Cit) Attorney; Susan Leal. Treasurer. Richard Sullivan. Tax Collector. Tommic Whitlow. Assistant 

Assessor; Gerald Green. Director of Planning. Robert Fcldrnan. Board of Appeals. Joe Grubb. Ex ec uti ve Director. Rent Arbitration 

Board, Kate Favetti, Executive Officer, Civil Service Commission, Andrea Gourdine, Director, Human Resources, Claire Murphy. 

General Manager, Retirement System, Alan Carlson, Trial Courts. Jessie Williams. Chief Probation Officer. Juvenile Probation. Marsha 

Bell, Librarian, law Library, David Fneders, Commissioner of Agriculture- Weights & Measures. Dr Boyd Stevens. Medical Examiner. 

Carl Friedman, Director, Animal Care and Control. Ricardo Hernandez. Public Administrator Public Guardian. Terence Hallman. 

District Attorney, Jeff Brown, Public Defender. Michael Hennessey. Sheriff. Armando Cervantes. Chief Probation Officer. Adult 

Probation; Robert Demmons. Chief. Fire Department. Ernie Pnndel. Budget Analyst office. Ken Bruce. Budget Analyst office. Fred 

Lau, Chief. Police Department Public: Larry Lalimore. POWER. Jake McCulder Continued to June 16. 1999 

6/16/99, CONTINUED Heard in Committee Speakers Harvey Rose, Budget Analyst. Robert Jenkins. Director. Steinhart Aquanum. 

Academy of Sciences, Supervisor Yec, Ken Bruce, Budget Analyst's office. Rich Newirth. Director. An Commission. Beth Murray, 

Managing Director. War Memorial. Steve Dykes. Director of Administrations, Fine Arts Museum, Dcdc Wilsey. President Fine Arts 

Commission; Emily Sano, Director. Asian Art Museum. Supervisor Bierman. Susan Hildreth. Deputy City Librarian, Public Library. 

Joel Robinson, Acting General Manager. Recreation and Park. Mark Carlson, Deputy Director. Public Works. Frank Chiu. Director. 

Department of Building Inspection, John Martin, Director, Airport, Doug Wong. Executive Director. Port. Stuart Sunshine, Director, 

Parking and Traffic Department; Julia Dawson, Finance. DPT. Julia Fnedlandcr. Acting Director Telecommunications & Information 

Services; Mike Martin, Acting Director, Emergency Communications Department. Andy Moran. General Manager. Public Utilities 

Commission; Michael Bums, General Manager, Municipal Railway, Jim Morales, Director, Redevelopment Agency. Rudy AUcrcz, 

Finance Director, Unified School District Public Janan Nc», Executive Director S F Apartment Association. Betsy Thager, Carol 

Kocivar . PTA, Leah Shahum; Marvis Phillips. Brad. Matt Brown. St Peters Housing. Jung Kwok Ching, Mr Guo. Chinese Progressive 

Association; Shuang Kuang, Jin Chi Zhso. Continued to June 17. 1999. 



City and County of San Francisco 2 Printed at 3:52 FM on 6/30/99 



Finance and Labor Committee Meeting Minutes June 23, 1999 

6/17/99, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Dr. Mitchell Katz, Director, Department of 
Public Health; Supervisor Yee; Supervisor Ammiano; Ed Harrington, Controller; David Ishida, Executive Director, Commission on the 
Aging; Supervisor Bierman; Marivic Bamba, Executive Director, Human Rights Commission; Sonia Melara, Executive Director, 
Commission on Status of Women; Ken Bruce, Budget Analyst's Office; Will Lightboume, Executive Director, Department of Human 
Services; Mathew Hymel, Mayors Office. Public: Gilbert Cnsswell. Continued to June 19, 1999. 

6/19/99, CONTINUED. Heard in Committee. Speakers: Supervisor Yee, Joe Lacey, Bemie Rush, North of Market Senior Center; Tom 
Phillips; Harry Goldfinger, Golden Gate Senior Services; Donnda Ottey, CASE; Jim Elick, Coalition for Aging; Nick Lederer, Golden 
Gate Senior Services; Arthur Jackson; Richard Oovv, Coalition on Homelessness (COH); Rebecca Graff. COH; Sarah Short, COH; 
Rosemary Dady, COH; Robert Haaland, COH; Miguel Wooding, COH; Judy Appel, Staff Attorney, COH; Mara Raider, COH; Shannan 
Keyton, Attorney COH; Mary Kate Connors, Police Crisis Intervention Program. Darren Lewis, COH; Matt Brown, St. Peters Housing; 
Ron Penz, Treatment on Demand Council; Jason Albertson; Jennifer Fnedenbach, COH, Rebecca Vilkersen, CURE, COH, Dorothy 
Norman; Carla Amader, La Raza Centro; Mark Stanford, Local 535; Valorie Villela; Victor Santis, 30th Street Senior Services; Frances 
Bums; David Drabblo, Paramedic, Fire Department, John Frank; Dale Butler; Lonnie Ruth Slunsky; Jim Keck; Larry Bradshaw, Dennis 
Chase, Names Project; Yvonne Kirols, Citizens In Action For Personal Assistance; Mitch Jeserich, Independent Living Center; J. 
Murray Fox, Legion of Honor Museum; Ernestine Weiss, Kathy Wolfe; Richard Rothman; Bob Planthold; Mary Ruth Gross; Jonna 
Ramey, St. Mary's Park Improvement Club; Marybeth Wallace, Coleman Advocates; Mary Hams; Garrett Jenkins, North of Market 
Planning Coalition, Laveme Hawkins; Coleman Advocates; Tom Nolan, Executive Director Project Open Hand; Carolyn Galbreat, 
Randall Museum; Karen Crommie, Friends of City Planning; Romona Albright, Friends of City Planning; Gilda Serrano, Parent 
Advocates; Richard Hanlin; Joan Pierson, Parent Advocate; Lanora Hamilton; Aaron Peslin; Gerry Crowley, Telegraph Hill Dwellers; 
Jamie Motley, Walenberg High School; R. Jamal, Youth Making a Change; Taj James, Coleman Advocates for Children; Herbert Aliga; 
Shireen Lee; Dr Christina Ma, Pediatrician, UCSF; Marie Ciepiela, OMI/Excelsior Beacon Center; Naz Johnson, Balboa High School; 
Dillion Scott, Balboa High School; Fred Hobson, S.F. Tomorrow; Emanuel Smith; Marcia Fomlla, Health Nurse, Balboa High School; 
Ann Anderson, Council of Neighborhood Libnanes; Vera Haile; Susan Mara, Scott Elsishans, Shanti Project; Duane Poe, Black 
Coalition on AIDS; Female, La Raza; Female, Health Services for the Disabled; Margaret Jereme, Association for Education of 
Children; Female, Family Childcare Provider, Western Addition; Judion Baker, South of Market Childcare; Maureen Carew; Amy 
Stukills, teacher. South Of Market Center; Female, Health Services, Children with Disabilities; David McGuire; Bill Sorro; Tessie 
Topal, Jewish Family Children Services; Camilla Ng; Winnie Yu; Darrell Poe, Native American AIDS Project, Michael Sanders; Mark 
Foreman; John Garcia; Perasha Zond, Nurse, Native American AIDS Project; Martin Wakatu, Director, Native American AIDS Project; 
Mabel Seto, Childcare provider; Jamie Huang. Childcare worker; Merry Fowler, Moscone Park Playground; Sue Chang, Director, 
Moscone Park Playground; Nancy Ho; Amy Yam; Wai Yee; Qum Meika; Lisa Chan; Carol Steiman, Library Commissioner; Barbara 
Berman, Friends of Library; Vas Prabhu, Director of Education, De Young Museum; Mary Pat Cress; Cheryl Bancroft; Autumn Payne; 
Marvin Melchor Bustamonte, Public Health, San Francisco General Hospital (SFGH), Neil Gendel; Maria Luz Torres; Tracey Faulkner; 
Nora Roman, nurse, SFGH; Mary Brown; Adbdalla Megahed, Mission Rock Shelter; Janie Hanagan. Jim Hartman, De Young Museum; 
Joe Wilson. Coleman Advocates; Stan Kean; Reuben Goodman; Bruce, American Institute of Architects; Pauline Lo; M. Ho, Family 
Network; Mrs. Zhu; Ma Jin; Amozr Lam; Mrs. Wong; Mrs. Lee; Ma Ho; Celia Siason; Emily Sauto; Carmen Maldonado, Amy Dawson, 
Director, Randall Museum; Jaho Oscherwhz, Local 790; Iris Biblowitz, RN; Elizabeth Kirchner; Ashbury Neighborhood Council; Linda 
Joseph, Local 535, lima Penate, Childcare Provider; Michele Lundy, S.F. Family Childcare, Michael Lyon; SFGH; Walker Langston 
Dukes, SFGH; Geraldo Ramos, Circle of Care; Norman Telson, Executive Director, Filipino-Amencan Council; Fern Ebeling, RN; 
Steve Cumer, Excelsior Youth Center; Carolyn Washington, Bayview Sr. Center; Steve Bingham, National Coalition for Youth; Leslie 
Ramos, Balboa High School, Rebecca Evans, Commission on the Environment; Anthony Bafondess, We The People. Continued lo 
June 22, 1999. 

6/22/99, CONTINUED. Heard in Committee. Speakers: Supervisor Yee; Harvey Rose, Budget Analyst; Supervisor Ammiano, Mathew 
Hymel, Mayor's Office; Ed Harrington, Controller, Supervisor Bierman. Department representatives: Steve Nelson, Administrative 
Services; Louise Renne, City Attorney; Susan Leal, Treasurer; Doris Ward, Assessor; Gerald Green, Director of Planning; Joe Grubb, 
Executive Director, Rent Arbitration Board; Andrea Gourdine, Director, Human Resources; Claire Murphy, General Manager, 
Retirement System; Alan Carlson, Trial Courts; Jessie Williams, Chief Probation Officer; David Frieders, Commissioner of 
Agriculture/Weights & Measures, Herbert Hawley, Administrator, Medical Examiner's Office; Carl Friedman, Director, Animal Care 
and Control; Ricardo Hernandez, Public Administrator/Public Guardian, Terence Hallinan, District Attorney; Jeff Brown, Public 
Defender; Michael Hennessey, Sheriff; Fred Brousseau, Budget Analyst's office; Lee Sampson. Business Manager, Adult Probation; 
Robert Demmons, Chief, Fire Department, Ernie Pnndel. Budget Analyst office; Ken Bruce, Budget Analyst office; Debra Ward. 
Financial Officer, Fire Department; Fred Lau, Chief, Police Department. Public: Larry Latimore. POWER; Jake McCulder The 
Assessor and City Planning Department was continued to June 24. 1999. The meeting was continued to June 23, 1999. 
6/22/99, CONTINUED. Heard in Committee: Speakers: Supervisors Yee; Bierman; Ammiano; Rebecca Villarson, Jennifer 
Friedenbach, Coalition on Homelessness (COH), Margaret Brodkin, Coleman Advocates, Stephen Bingham, National Center for Youth 
Law; Lana Berger, POWER, Karen Sherr; Rand Quinn, N. California Immigrant Rights Coalition, Roger Bazcleg, PTA; Sandra 
Vanderpool, Guerrero House, David Graves. Kids-ln-Parks, Deane Shokes. Stonestown YMCA; Alexander Vaughan, Mission YMCA; 
Art Tapia, Coleman Advocates; Sue Eisenberg, Self-Help for the Elderly, Gerald de Ryan; Deetje Boler; Zachary Wald. UayPeds. Bets) 
Thaggard, WalkSF; Leah Shaholm, SF Bicycle Coalition (SFBC); Ken Kelton, Pcdsafe; Kalhirene Sonano. Homeless Prenatal Program. 
James Momson, WalkSF, Margaret Robbins; Manny Sunshine, Urban Elders Program; Emily Drenncn, SFBC; Joshua Swii.sk>. 
WalkSF; Irv Katuna, SF Stale University, President Gamma; Robert Nash, POWER, Jon Winston, Martina Gillis, Darren I ewis, COH; 
Barbara Hughes, POWER, "Marlene," POWER; "Garth," POWER; Ed Ealing, POWER, Roxanne Trade, POWER, Julia Greenfield. 
Lawyers Committee for Civil Rights; Abdalla Megahed; Sue Cauthcn, Sunshine Ordinance Task Force; David Pilpcl. Rescue MUNI; 
Pauline Peel, Seniors Disability Advisory Council; Martha Bndegum, COH, John Bergman, POWER. Emma Hams. POW1 R. Michelle 
Michelson, Legal Aid Society; Ed Willard. POWER; "Will B. Paidwell" (pseudonym), POWER Continued to June 23, 1999. 



City and County of San Francisco 3 Printed at 3:52 PM on 6rttW9 



Finance and Labor Committee Meeting Minutes June 23, 1999 

Heard in Committee. Speakers: Harvey Rose. Budget Analyst. Enrique Navas, San Francisco Unified School 
District (SFUSD); Tim Tronson, SFUSD; Robert Jenkins. Director, Steinhart Aquarium, Academy ofScu 
Supervisor Yee; Ken Bruce. Budget Analyst's office, Rich Newirth, Director. Art Commission, Supervisor 
Bierman; Beth Murray, Managing Director, War Memorial. Steve Dykes, Director of Administrations, Fine 
Arts Museum; Dede Wilsey. President, Fine Arts Commission F.mih Sano. Director, Asian Art Museum. 
Supervisor Bierman; Susan Hildreth. Deputy City Librarian. Public Library. Supervisor Ammiano. Mathess 
Hymel, Mayor's office; Debra Newman, Budget Analyst's office; Joel Robinson, Acting General Manager. 
Recreation and Park; Mark Primeau. Director, Public Works; Frank Chut Director, Department of Building 
Inspection; Marcus Perro, Deputy Director, Airport; Doug Wong. Executive Dire* tor. Port, Stuart Sunshine. 
Director, Parking and Traffic Department; Julia Friedlander, Acting Director Telecommunications & 
Information Services; Mike Martin, Acting Director. Emergent v Communications Department. Andy Moran. 
General Manager, Public Utilities Commission; Michael Burns, General Manager. Municipal Railway 
Continued to June 24, 1999. 
CONTINUED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991132 (Redevelopment Agency Budget and Bonds| 

Resolution approving the budget of the Redevelopment Agency of the City and County of San Francisco for 
fiscal year 1999-2000, and approving the issuance by the Agency of Bonds in an aggregate principal amount 
not to exceed $20,000,000 for the purpose of financing redevelopment activities in fiscal year 1999-2000. 
(Redevelopment Agency) 

(Fiscal impact.) 

6/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers Haney Rose. Budget Analyst, Tiza G Peterson. Deputy Executive Director. 

Redevelopment Agency Amended, (sec Budget Analyst report showing recommendations of Finance and 

Labor Committee in file), and on page 2. beginning at line I 7, delete "as the Budget is show n in Exhibit "A " 

attached hereto, which Exhibit "A " is incorporated herein and made a part hereof " 

AMENDED. 

To Board on July 12. 1999. 

RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



ADJOURNMENT 

The meeting adjourned at 3: 10 p.m. 



City and Count}' of San Francisco 4 Printed at 3:f3 PM on 6/30/99 



3 



CITY AND COUNTY 




Public Library,Gov't Info. Ctr., 5 th Fir. 
Attn: Susan Horn 



OF SAN FRANCISCO 



30ARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



June 21, 1999 
TO: , Finance and Labor Committee 

FROM: Budget Analyst 

SUBJECT: June 23, 1999 Finance and Labor Committee Meeting 

Item 2 - File 99-1132 

The proposed resolution (a) would approve the budget of the San Francisco 
Redevelopment Agency (SFRA) for Fiscal Year 1999-2000 and (b) would approve the 
issuance of Tax Increment Bonds not to exceed $20 million. 

Recommendation 

Amend the proposed resolution to reflect the reductions recommended by the 
Budget Analyst to the Mayor's Recommended Fiscal Year 1999-2000 budget for the 
SFRA and approve the resolution as amended. 



f/?^/ 1 ^ 



Harvey M. Rose 



cc: Supervisor Yee 

Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 



Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakev 



DOCUMENTS DEPT. 

JUN 2 3 1999 

SAN FRANCISCO 
p UBLIC LIBRARY 



x^^n City and County of San Francisco Cl * Ha " 

/v/^S^\T\ J J lDr Carlton B. 

/s/£l£,#\t\ Meeting Minutes Goodiett place 

IsLSIiiAiJSl J - "/ San Francisco, CA 

X'sffe^P^' Finance and Labor Committee 94102-4689 

xIKTjjJx Members: Supervisors I. eland Yee, Sue Merman and Tom Ammiano 

Clerk: Mary Red 

Thursday, June 24, 1 999 1 :00 PM City Hall, Room 263 

Budget Review Hearings 

Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 

The meeting convened at 1: 1 5 p.m. 



City and County of San Francisco I Printtd at UiS2 AM on - I V9 



Finance anil Labor Committee Mcctiiif; Minutes June 24, 1 999 



991065 IBudget, 1999-2000| 

Hearing to consider 1999-2000 Budget. 

General Administration and Finance (Continued from 6'22/99) 

Assessor/Recorder (ASR) 
City Planning (CPC) 

Human Welfare 

Commission on Aging (AGE) 
Human Rights Commission (HRC) 
Commission on the Status of Women i \V( )\| i 
Human Services (DHS) 

Community Health - Department of Public llcjltli 

Community Health Network (HCN) 
Public Health (HPH) 

General City Responsibilities (GEN) 

Capital Projects (CAP) 

6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

6/15/99, CONTINUED Heard in Committee Speakers Supervisor Yee. Harvey Row, Budget Analyst. Supervisor Ammiano, Mathew 
Hymel, Mayor's Office; Id Harrington. Controller; Supervisor Bicrman Department representatives Steve Nelson. Administrative 
Services, 1 d I ee. Director. Purchasing. John Marks. Convention Facilities Management, Naomi Nishioka, Acting Director, (lections. 
Deborah Alvere/, Director, Department of Children, Youth & Families. Moniquc M I UTice. Ann Mane Conroy, Director. 

Treasure Island, Francesca Vietor, Director, Department of Environment. Gloria Young. Clerk of the Hoard. Ginny Vida, Director, 
Ethics Commission; Louise Renne.Cuy Attorney. Susan I eal, treasurer. Richard Sullivan, fax Collector. lommic Whitlow, Assistant 
Assessor; Gerald Green, Director of Planning. Robert Fcldman. Hoard ol Appeals. Joe Grubb. Executive Director. Rent Arbitration 
Board, Kate Favetti. [Executive Officer, Civil Ser\ ice Commission; Andrea Gourdine. Director. Human Resources. Claire Murphy, 
General Manager. Retirement System, Alan Carlson, Trial Courts; Jessie Williams, Chief Probation Officer, Juvenile Probation. Marsha 
Bell, Librarian, law 1 ibrary , David Fneders, Commissioner of Agriculture Weights & Measures, Dr Boyd Stevens. Medical Examiner. 
Carl Friedman, Director. Animal Care and Control; Ricardo Hernandez. Public Administrator Public Guardian. Terence Hallinan. 
District Attorney. Jeff Brown, Public Defender; Michael Hennessey, Sheriff. Armando Cervantes. Chief Probation Officer, Adult 
Probation. Robert Dcmmons. Chief, Fire Department, Ernie Pnndel. Budget Analyst office. Ken Bruce. Budget Analyst office. Fred 
Lau, Chief, Police Department. Public: Larry Latimorc. POWER. Jake McCulder Continued to June 16. 1999 

6/16/99, CONTINUED Heard in Committee Speakers Harvey Rose. Budget Analyst. Robert Jenkins, Director, Stcinhart Aquanum, 
Academy of Sciences; Supervisor Yee; Ken Bruce. Budget Analyst's office. Rich Ncvvirlh. Director. Art Commission. Beth Murray. 
Managing Director. War Memorial. Steve Dykes. Director of Administrations. Fine Arts Museum. Dcde Wilsey. President Fine Arts 
Commission, Emily Sano. Director, Asian Art Museum, Supervisor Bierman, Susan Hildrcth, Deputy City 1 ibranan. Public Library. 
Joel Robinson. Acting General Manager. Recreation and Park. Mark Carlson, Deputy Director. Public Works. Frank Chiu. Director, 
Department of Building Inspection. John Martin. Director. Airport, Doug Wong. Executive Director. Port. Stuart Sunshine. Director, 
Parking and Traffic Department, Julia Dawson. Finance, DPT, Julia Fncdlander, Acting Director Telecommunications & Information 
Services, Mike Martin, Acting Director, Emergency Communications Department. Andy Moran, General Manager. Public Utilities 
Commission; Michael Bums, General Manager, Municipal Railway. Jim Morales. Director. Redevelopment Agency. Rudy Alvercz. 
Finance Director, Unified School District Public: Janan New, Executive Director S F Apartment Association. Betsy Thager. Carol 
Kocivar., PTA, Leah Shahum; Mams Phillips; Brad. Matt Brown. St Peters Housing. Jung Kwok Ching. Mr Guo. Chinese Progressive 
Association, Shuang Kuang, Jin Chi Zhso Continued to June 17, 1999. 

6/17/99, CONTINUED Heard in Committee Speakers Harvey Rose. Budget Analyst. Dr Mitchell Katz, Director. Department of 
Public Health; Supervisor Yee; Supervisor Ammiano. Ed Harrington, Controller. David Ishida. Executive Director. Commission on the 
Aging; Supervisor Bierman; Marivic Bamba, Executive Director. Human Rights Commission. Soma Melara. Executive Director. 
Commission on Status of Women, Ken Bruce, Budget Analyst's Office; Will Lightboumc, Executive Director. Department of Human 
Services; Mathew Hymel, Mayors Office. Public; Gilbert Cnsswell Continued to June 19. 1999 



City and County of San Francisco 2 Printed at 11:52 4\1 on ' 1 vV 



Finance and Labor Committee Meeting Minutes June 24, 1999 

6/19/99, CONTINUED. Heard in Committee. Speakers: Supervisor Yee; Joe Lacey; Bernie Rush, North of Market Senior Center; Tom 
Phillips; Harry Goldfinger, Golden Gate Senior Services; Dorinda Ottey, CASE; Jim Elick, Coalition for Aging; Nick Lederer, Golden 
Gate Senior Services; Arthur Jackson; Richard Oow, Coalition on Homelessness (COH); Rebecca Graff, COH; Sarah Short, COH; 
Rosemary Dady, COH; Robert Haaland, COH; Miguel Wooding, COH; Judy Appel, Staff Attorney, COH; Mara Raider, COH; Shannan 
Keyton, Attorney COH; Mary Kate Connors, Police Crisis Intervention Program. Darren Lewis, COH; Matt Brown, St. Peters Housing; 
Ron Penz, Treatment on Demand Council; Jason Albertson; Jennifer Fnedenbach, COH; Rebecca Vilkersen, CURE, COH; Dorothy 
Norman; Carla Amader, La Raza Centra; Mark Stanford, Local 535; Valorie Villela; Victor Santis, 30th Street Senior Services; Frances 
Bums; David Drabblo, Paramedic, Fire Department, John Frank; Dale Butler; Lonnie Ruth Slunsky; Jim Keck; Larry Bradshaw; Dennis 
Chase, Names Project; Yvonne Kirols, Citizens In Action For Personal Assistance; Mitch Jeserich, Independent Living Center; J. 
Murray Fox, Legion of Honor Museum; Ernestine Weiss; Kathy Wolfe, Richard Rothman; Bob Planthold; Mary Ruth Gross; Jonna 
Ramey, St. Mary's Park Improvement Club; Marybeth Wallace, Coleman Advocates; Mary Harris; Garrett Jenkins, North of Market 
Planning Coalition; Laveme Hawkins; Coleman Advocates; Tom Nolan, Executive Director Project Open Hand; Carolyn Galbreat, 
Randall Museum; Karen Crommie, Friends of City Planning; Romona Albright, Friends of City Planning; Gilda Serrano, Parent 
Advocates; Richard Hanlin; Joan Pierson, Parent Advocate; Lanora Hamilton, Aaron Peslin, Gerry Crowley, Telegraph Hill Dwellers; 
Jamie Motley, Walenberg High School; R. Jamal, Youth Making a Change; Taj James, Coleman Advocates for Children; Herbert Aliga; 
Shireen Lee; Dr Christina Ma, Pediatrician, UCSF, Marie Ciepiela, OMI/Excelsior Beacon Center; Naz Johnson, Balboa High School; 
Dillion Scott, Balboa High School; Fred Hobson, S.F. Tomorrow; Emanuel Smith; Marcia Forrilla, Health Nurse, Balboa High School; 
Ann Anderson, Council of Neighborhood Libnaries, Vera Haile; Susan Mara; Scott Elsishans, Shanti Project; Duane Poe, Black 
Coalition on AIDS; Female. La Raza; Female, Health Services for the Disabled; Margaret Jereme, Association for Education of 
Children; Female, Family Childcare Provider, Western Addition; Judion Baker, South of Market Childcare; Maureen Carew; Amy 
Stukills, teacher. South Of Market Center; Female, Health Services, Children with Disabilities; David McGuire; Bill Sorro; Tessie 
Topal, Jewish Family Children Services; Camilla Ng; Winnie Yu, Darrell Poe, Native American AIDS Project; Michael Sanders; Mark 
Foreman; John Garcia, Perasha Zond, Nurse, Native American AIDS Project, Martin Wakatu, Director, Native American AIDS Project; 
Mabel Seto, Childcare provider; Jamie Huang, Childcare worker; Merry Fowler, Moscone Park Playground; Sue Chang, Director, 
Moscone Park Playground; Nancy Ho; Amy Yam; Wai Yee; Qum Meika; Lisa Chan; Carol Steiman, Library Commissioner; Barbara 
Berman, Friends of Library; Vas Prabhu, Director of Education, De Young Museum, Mary Pat Cress, Cheryl Bancroft, Autumn Payne; 
Marvin Melchor Bustamonte, Public Health, San Francisco General Hospital (SFGH); Neil Gendel; Mana Luz Torres; Tracey Faulkner; 
Nora Roman, nurse, SFGH; Mary Brown; Adbdalla Megahed, Mission Rock Shelter; Janie Hanagan; Jim Hartman, De Young Museum; 
Joe Wilson, Coleman Advocates, Stan Kean; Reuben Goodman; Bruce, American Institute of Architects; Pauline Lo; M. Ho. Family 
Network, Mrs. Zhu; Ma Jin; Amozr Lam; Mrs. Wong; Mrs. Lee; Ma Ho; Celia Siason; Emily Sauto; Carmen Maldonado; Amy Dawson, 
Director, Randall Museum; Jaho Oscherwhz, Local 790; Ins Biblowitz, RN; Elizabeth Kirchner; Ashbury Neighborhood Council; Linda 
Joseph, Local 535; lima Penate, Childcare Provider; Michele Lundy, S.F Family Childcare; Michael Lyon, SFGH; Walker Langston 
Dukes, SFGH; Geraldo Ramos, Circle of Care; Norman Telson, Executive Director, Filipino-American Council; Fern Ebeling, RN; 
Steve Currier, Excelsior Youth Center; Carolyn Washington, Bayview Sr. Center; Steve Bingham, National Coalition for Youth; Leslie 
Ramos, Balboa High School, Rebecca Evans, Commission on the Environment; Anthony Bafondess, We The People. Continued to 
June 22, 1999. 

6/22/99, CONTINUED. Heard in Committee. Speakers: Supervisor Yee; Harvey Rose, Budget Analyst; Supervisor Ammiano; Mathew 
Hymel, Mayor's Office, Ed Harrington, Controller; Supervisor Bierman. Department representatives: Steve Nelson, Administrative 
Services; Louise Renne, City Attorney; Susan Leal, Treasurer; Doris Ward, Assessor; Gerald Green, Director of Planning; Joe Grubb, 
Executive Director, Rent Arbitration Board; Andrea Gourdine, Director, Human Resources; Claire Murphy, General Manager, 
Retirement System; Alan Carlson, Trial Courts; Jessie Williams, Chief Probation Officer; David Fneders, Commissioner of 
Agriculture/Weights & Measures; Herbert Hawley, Administrator, Medical Examiner's Office; Carl Friedman, Director, Animal Care 
and Control; Ricardo Hernandez, Public Administrator/Public Guardian, Terence Hallinan, District Attorney; Jeff Brown, Public 
Defender, Michael Hennessey, Sheriff; Fred Brousseau, Budget Analyst's office; Lee Sampson, Business Manager, Adult Probation; 
Robert Demmons, Chief, Fire Department; Ernie Prindel, Budget Analyst office; Ken Bruce, Budget Analyst office, Debra Ward, 
Financial Officer, Fire Department, Fred Lau, Chief, Police Department. Public: Larry Latimore, POWER, Jake McCulder. The 
Assessor and City Planning Department was continued to June 24, 1999. The meeting was continued to June 23, 1999. 
6/22/99, CONTINUED. Heard in Committee: Speakers: Supervisors Yee; Bierman; Ammiano; Rebecca Villarson, Jennifer 
Friedenbach, Coalition on Homelessness (COH); Margaret Brodkin, Coleman Advocates; Stephen Bingham, National Center for Youth 
Law; Lana Berger, POWER; Karen Sherr, Rand Quinn, N. California Immigrant Rights Coalition; Roger Bazeleg, PTA; Sandra 
Vanderpool, Guerrero House; David Graves, Kids-In-Parks; Deane Shokes, Stonestown YMCA; Alexander Vaughan, Mission YM< \. 
Art Tapia, Coleman Advocates; Sue Eisenberg, Self-Help for the Elderly; Gerald de Ryan; Deetje Boler; Zachary Wald, BayPeds; Betsy 
Thaggard, WalkSF; Leah Shaholm, SF Bicycle Coalition (SFBC); Ken Kelton, Pedsafc, Kathirene Soriano, Homeless Prenatal Program; 
James Momson, WalkSF, Margaret Robbins, Manny Sunshine, Urban Elders Program; Emily Drennen, SFBC, Joshua Switsky, 
WalkSF; Irv Katuna, SF State University, President Gamma, Robert Nash, POWER; Jon Winston; Martina Gillis; Darren Lewis, COH; 
Barbara Hughes, POWER; "Marlene," POWER; "Garth," POWER; Ed Ealing, POWER; Roxannc Trade, POWER; Julia Greenfield. 
Lawyers Committee for Civil Rights, Abdalla Megahed, Sue Cauthen, Sunshine Ordinance Task Force. Dav id 1'ilpel. Rescue MUNI; 
Pauline Peel, Seniors Disability Advisory Council, Martha Bndegum, COH, John Bergman, POWER, Emma Hams, POWER, Michelle 
Michelson, Legal Aid Society; Ed Willard, POWER; "Will B. Paidwell" (pseudonym), POWER. Continued to June 23, 1999 
6/23/99, CONTINUED Heard in Committee Speakers: Harvey Rose, Budget Analyst. Enrique Navas. San Francisco Unified School 
District (SFUSD); Tim Tronson, SFUSD; Robert Jenkins, Director, Steinhart Aquanum, Academy of Seances. Supen isor Yee. Ken 
Bruce, Budget Analyst's office, Rich Newirth, Director, Art Commission, Supervisor Bierman. Beth Murray, Managing Director. W.ir 
Memorial; Steve Dykes, Director of Administrations, Fine Arts Museum; Dcde Wilsey, President, Fine Ans Commission; Emily Sano, 
Director, Asian Art Museum, Supervisor Bierman; Susan llildreth, Deputy City I ihranan. Public 1 ihrary . Supervisor Ammiano; 
Mathew Hymel, Mayor's office; Debra Newman, Budget Analyst's office, Joel Robinson. Acting General Manager. Recreation and Park. 
Mark Pnmcau, Director, Public Works, Frank Chill, Director, Department of Building Inspection, M.ircus PeilO, Deput) Director, 
Airport; Doug Wong, Executive Director, Port, Stuart Sunshine. Director. Parking and Traffic Department; Julia Friedlamler. Acting 
Director Telecommunications & Information Services, Mike Martin, \ctmg Director. Emergency Communications Department; Vulv 
Moran, General Manager, Public Utilities Commission; Michael Bums, General Manager. Municipal Kailw js ( onlinued to June 2-t. 
1999. 

City and County of San Francisco 3 Printed at 1 1:S2 AM on 7/1/99 



Finance and Labor Committee Metting MinuUt June 24, lt'/<) 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst, Supervisor Yee; Gerald Green, Director oj 

Planning; Raymond de Portillo, Chair, Commission on Aging, David Ishida, Executive Director, Commission 

on Aging; Supervisor Ammiano; Marivic Bamba, Executive Director, Human Rights Commission, Will 

Lightbourne, Executive Director, Department of Human Services. Monique Zmuda, Department oj I'uhlu 

Health; Supervisor Bierman; Mathew Hymel. Mayor's office; Supervisor Yee, Ken Bruce. Budget Analyst's 

office; Fred Lau, Chief, Police Department Amended fsee Budget Analyst Report showing recommendations 

of Finance and Labor Committee in file, also see ( ontroller's report outlining budget changes In department 

program and object; appropriation reserves detail, and Committee's budget addbacks) To Board on July 12. 

1999. 

AMENDED. 

Annual Budget of the City and County of San Francisco for Fiscal Year 1999-2000. 

(Charter Section 9.100 provides the Board shall not adopt the Budget earlier than July 15, 1999, nor later than 

August 1, 1999.) 

RECOMMENDED AS AMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



991208 [Designating the San Francisco Examiner as Official Newspaper for fiscal \car 1999-2000 (I J pc I 
Advertising, must publish at least 5 consecutive days a week)] 

Resolution designating the San Francisco Examiner to be official newspaper of the City and Count)' of San 
Francisco for specified categories of advertising, commencing July 1, 1999. (Purchaser) 
6/16/W. ku I ivi D (VND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers Harvey Rose, Budget Analyst, Supervisor Yee. Mike Hard. Purchasing 
Department. To Board June 28, 1999 

RECOMMENDED AS COMMITTEE REPORT by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991209 (Designating the San Francisco Independent as Official Newspaper for fiscal \ear 1999-2000 (Type 2 
Advertising, must publish at least 3 nonconsecutivc da\s a week)| 

Resolution designating the San Francisco Independent to be official newspaper of the City and County of San 
Francisco for specified categories of advertising, commencing July 1. 1999. (Purchaser) 
6/16/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers Harvey Rose, Budget Analyst; Supervisor Yee. Mike Hard Purchasing 

Department. To Board June 28. 1999. 

RECOMMENDED AS COMMITTEE REPORT by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 4 Printed at 1 1:52 AM on 7, / VQ 



Finance and Labor Committee 



Meeting Minutes 



June 24, 1999 



991210 [Outreach Newspapers for fiscal year 1999-2000] 

Resolution designating the Bay View Inc., the Sun Reporter and the Small Business Exchange to be outreach 
newspapers of the City and County of San Francisco for the African- American community; designating the 
China Press, the Sing-Tao Daily News, and the World Journal to be outreach newspapers of the City and 
County of San Francisco for the Chinese community; designating the El Latino and the El Reporter (The 
Reporter) to be outreach newspapers of the City and County of San Francisco for the Hispanic Community; 
designating the Philippine Guardian as the outreach newspaper of the City and County of San Francisco for the 
Philippine community; designating the Korean Times as the outreach newspaper of the City and County of 
San Francisco for the Korean community; designating the Hokubei Mainuchi as the outreach newspaper of the 
City and County of San Francisco for the Japanese community; designating the San Francisco Bay Times and 
the Bay Area Reporter as the outreach newspapers for the Lesbian/Gay/Bisexual community, commencing on 
July 1, 1999. (Purchaser) 

6/16/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose. Budget Analyst; Supervisor Yee. Mike Ward, Purchasing 
Department. Amended to allow purchaser to execute contracts with only those newspapers who comply with 
the City's equal benefits requirements ; new title. To Board as a Committee Report on June 28, 1999. 
AMENDED. 

Resolution designating the Bay View Inc., the Sun Reporter and the Small Business Exchange to be outreach 
newspapers of the City and County of San Francisco for the African- American community; designating the 
China Press, the Sing-Tao Daily News, and the World Journal to be outreach newspapers of the City and 
County of San Francisco for the Chinese community; designating the El Latino and the El Reporter (The 
Reporter) to be outreach newspapers of the City and County of San Francisco for the Hispanic Community; 
designating the Philippine Guardian as the outreach newspaper of the City and County of San Francisco for the 
Philippine community; designating the Korean Times as the outreach newspaper of the City and County of 
San Francisco for the Korean community; designating the Hokubei Mainuchi as the outreach newspaper of the 
City and County of San Francisco for the Japanese community; designating the San Francisco Bay Times and 
the Bay Area Reporter as the outreach newspapers for the Lesbian/Gay/Bisexual community, commencing on 
July 1, 1999; authorizing the Purchaser to execute contracts with only those outreach newspapers that fully 
comply with all City contracting requirements, including equal benefits requirements. (Purchaser) 
RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991052 [Annual Appropriation Ordinance FY 1999-2000] 
Mayor 

Annual Appropriation Ordinance appropriating all estimated receipts and all estimated expenditures for the 
City and County of San Francisco for fiscal year ending June 30, 2000. (Controller) 

(Fiscal impact; Companion measure to Files) 
6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Bierman; Supervisor Ammiano; 
Supervisor Yee. Amended to reflect the Finance and Labor Committee's recommendations (see file for 
details); to Board meeting of July 12, 1999. 
AMENDED. 

RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Primed at 11:52 AM on ' I VV 



Finance and Labor Committee Meeting Minutes June 24, 1999 



991086 |Annual Salary Ordinance, FY 1999-2000] 
Mayor 

Annual Salary Ordinance enumerating positions in the annual budget and appropriation ordinance lor the 
fiscal year ending June 30, 2000, continuing, creating or establishing these positions; enumerating and 
including therein all positions created by Charter or State law for which compensations are paid from City and 
County funds and appropriated in the annual appropriation ordinance; authorizing appointments or 
continuation of appointments thereto; specifying and fixing the compensations and work schedules thereof. 
and authorizing appointments to temporary positions and fixing compensations therefor. 

(Fiscal impact; Companion measure to Files 991065, 991052.) 
6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst, Supervisor Bierman, Supervisor Ammumo; 

Supervisor Yee. Amended to reflect the Finance and Labor Committee's recommendations (sec //,■'. 

details); to Board meeting of July 12. 1999. 

AMENDED. 

RECOMMENDED AS AMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



ADJOURNMENT 

The meeting adjourned at 3:59 p. m 



City and County of San Francisco 6 Primed at 11:52 AM on VI V9 



f 

3 



CITY AND COUNTY 




Public Library, Gov't Information Ctr.. 5 th Fir. 
Attn: Susan Horn, Dept. 41 



2 OF SAN FRANCISCO 



^BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



June 22, 1999 

TO: 4 Finance and Labor Committee 

FROM: .,_ Budget Analyst 

SUBJECT: June 24, 1999 Finance and Labor Committee Meeting 
\ 

Items 2 and 3 - Files 99-1208 and 99-1209 



DOCUMENTS DEPT. 

JUN 2 h 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 



Department: 
Item: 



Description: 



Purchasing Department 

File 99-1208 : Resolution designating an as yet to be 

determined newspaper to be the official newspaper of the 
City for specified categories of advertising ( Type 1) . 
commencing July 1, 1999. 

File 99-1209 : Resolution designating the San Francisco 
Independent to be the official newspaper of the City for 
specified categories of official advertising ( Type 2) , 
commencing July 1, 1999. 

The City's official advertising is divided into two categories: 

TVpe 1 - Advertisements for Two of More Consecutive Davs 
Official advertising which must be published on two or more 
consecutive days, and all official advertising which is 
required to be published in accordance with Section 2.103 of 
the Charter for special meetings of the Board of Supervisors 
and its standing or special committees. The Official 
Newspaper must publish at least 5 days a week for Type 1 
Advertising. 



Memo to Finance and Labor Committee 

June 24, 1999 Finance and Labor Committee Meeting 



Type 2 - Advertisements for Single or Non-consecutive Days 
Official advertising, which must be published one time, other 
than one-time advertising related to special meetings for the 
Board of Supervisors and its standing and/or special 
committees, or more than one time but not more than three 
times per week for a specified number of weeks. The Official 
Newspaper must publish at least 3 days a week for Type 2 
Advertising. 

The City currently contracts with the San Francisco 
Examiner for Type 1 official advertising and with the San 
Francisco Independent for Type 2 official advertising. The 
contracts are due to expire June 30, 1999. 

Proposition J, which was approved by the San Francisco 
electorate in November of 1994, in part, changed the criteria 
by which the City selects a newspaper to publish the City's 
official advertising. The Purchasing Department advises 
that, under Proposition J, pursuant to Section 2.81 of the 
Administrative Code, several criteria are considered and 
used to evaluate bids, on the basis of a point system. Bidders 
are required to submit typeset samples and other 
documentation for evaluation purposes. The criteria used for 
evaluation of bids under Section 2.81 includes (1) the cost of 
advertising in each newspaper (the newspaper which bids the 
lowest price for advertising receives additional points), (2) 
the level of circulation of each newspaper (the newspaper 
with the largest circulation receives additional points), (3) 
the cost of the newspaper (any newspaper with a majority of 
circulation that is free of charge to the general public 
receives additional points), and (4) the ownership of the 
newspaper (newspapers which are owned by local, minority 
or women-owned firms receive additional points). 

File 99-1208: For FY 1999-2000. the Purchasing 
Department estimates that the total costs for Type 1 official 
advertising in the San Francisco Examiner under a contract 
extension will be $32,780. or $13,280 more than the 
estimated $19,500 expended on Type 1 advertising in FY" 
1998-1999. According to the Purchasing Department, in 
response to its Invitation for Bids, the Department did not 
receive any bids for Type 1 official advertising. Because no 
bids were received, the Purchasing Department is not 
making a recommendation regarding the award of the City's 

BOARD OF SUPERVISORS 
BUDGETANALYST 



Memo to Finance and Labor Committee 

June 24, 1999 Finance and Labor Committee Meeting 



Type 1 official advertising for FY 1999-2000. Instead, the 
Purchasing Department is presenting information to the 
Board of Supervisors about the San Francisco Examiner and 
San Francisco Chronicle newspapers. According to the 
Purchasing Department, the San Francisco Examiner and 
San Francisco Chronicle have historically been the only 
responsive bidders for Type 1 advertising, and appear to be 
the only newspapers that meet the Administrative Code's 
requirements for Type 1 advertising. 

Because no bids were received for Type 1 advertising, the 
Purchasing Department has presented five options to the 
City for FY 1999-2000 for the Board of Supervisors 
consideration as follows: (1) the Board of Supervisors could 
choose not to have an Official Newspaper for Type 1 
advertising, (2) the Board of Supervisors could direct 
Purchasing to rebid Type 1 using the same bid requirements, 
(3) the Board of Supervisors could direct Purchasing to rebid 
and relax some of the requirements of the Administrative 
Code, (4) the Board of Supervisors could designate the 
Examiner or Chronicle as the Official Newspaper for Type 1, 
or (5) the Board of Supervisors could designate the Examiner 
as the Official Newspaper for Type 1 advertising by 
extending the current contract with the Examiner (see 
Attachment 1, pages 2-3 of the letter from the Purchasing 
Department, dated June 3, 1999 for a more detailed 
description of the options). 

Regarding the five options, the Director of Purchasing stated 
that with respect to Option No. 5 which, if adopted by the 
Board of Supervisors, would designate the Examiner as the 
Official Newspaper for Type 1 advertising, "It appears this 
option is the most practical, timely, and economical method 
to meet the City's needs for Type 1, consecutive day 
advertising." 

The Purchasing Department advises that the cost per line of 
typeset in FY 1999-2000 would be $2.24, or $0.20 more than 
the $2.04 charged in FY 1998-1999, representing a 9.8 
percent cost increase. Attachment 1, page 8, provided by the 
Purchasing Department, contains bid data and point 
calculation information for the San Francisco Examiner, 
using last year's bid data, and assuming the Examiner's 
contract is extended. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 24, 1999 Finance and Labor Committee Meeting 

File 99-1209: For FY 1999-2000, the Purchasing 
Department estimates that total costs for Type 2 official 
advertising in the San Francisco Independent will total 
$783,400, or $53,700 less than the estimated $837,100 
expended for Type 2 advertising in FY 1998-1999. According 
to the Purchasing Department, in response to its Invitation 
for Bids, the Department received one bid for Type 2 official 
advertising. The San Francisco Independent proposed to 
extend its existing contract with the City for Type 2 
advertising. The Purchasing Department is recommending 
that the San Francisco Independent be awarded the City's 
Type 2 official advertising for FY' 1999-2000. The Purchasing 
Department advises that the cost per line of typeset in FY" 
1999-2000 would be $4.30. or $0.26 less than the $4.56 
charge in FY 1998-1999, a 5.7 percent decrease. Attachment 

1. page 8, provided by the Purchasing Department contains 
the bid data and point calculation information for the San 
Francisco Independent . 

Comments: 1. The Purchasing Department states that the City Attorney 

has advised that the Board of Supervisors need not accept 
the Purchasing Department's recommendations to award 
contracts to newspapers for Official Advertising and may 
designate any newspaper which is qualified under the 
Charter and the Administrative Code. 

2. As explained on Attachment 1. page 4, the Purchasing 
Department estimated the average of the total lines of official 
advertising placed by the City during a four-year period. FY' 
1994-1995 through FY' 1997-1998, and multiplied by the 
newspaper's line price, to estimate the cost of Type 1 and 
Type 2 official advertising for FY 1999-2000. This 
calculation is detailed for Type 2 advertising based on the bid 
received in Attachment 1. page 8. The Purchasing 
Department has not provided a similar calculation for Type 1 
advertising, because no bids were received. 

3. According to the Purchasing Department, pursuant to 
Section 2.81-2(a) of the Administrative Code, 90 percent of 
the cost of official advertising will be paid to the Official 
Newspapers and 10 percent will be withheld and placed into 
a revenue fund to pay for outreach advertising which are 
weekly advertisements placed in community-based 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

4 



Memo to Finance and Labor Committee 

June 24, 1999 Finance and Labor Committee Meeting 

periodicals, targeting African American, Chinese, Latino, and 
Lesbian, Gay, and Bisexual communities, designated by the 
Board of Supervisors. In addition, any portion of the 10 
percent set aside that is not expended in previous years will 
be carried forward for future outreach advertising. 

Recommendation: Approval of the proposed resolutions is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

5 



/ / *— 



- . Atta chment _ , . 

City and County of San Francisco p age i Q f 9 Purchasing Department 




Willie Lewis Brown, Jr. 
Mayor 



i'r0r- lr 



Through: 

From: 

Subject: 
Summary 



June 3, 1999 



~ C ? 



JJjjy ^ - 



Gloria Young 
Clerk of the Board 



*4 



Edwin M. Lee 
Director 



Steve Nelson 

Director of Administrative Services 

Edwin M. Lee ^(L/ 
Director of Purchasing 



Resolutions Designating Official Newspapers and Outreach Newspapers for FY 99-2000 




In accordance with §2.81 of the Administrative Code, I am reporting to the Board the results of Purchasing's 
request for bids for Official Advertising. Purchasing has prepared the enclosed resolutions for the two 
categories of advertising. 

This memo describes the process of evaluating bids for Official Advertising, the major issues encountered, and 
the Board's options. A corresponding report on Outreach Advenising and recommendations follows the 
report on Official Advertising. 

A. Official Advertising 

As required by the Admin. Code, Purchasing is recommending the San Francisco Independent as the 
Official Newspaper for Type 2, nonconsecutive day advertising. Because no bids were received for Type 
1, consecutive day advertising, Purchasing is not making a recommendation for Type 1. Instead. 
PurchasHig is presenting information about the Chronicle and Examiner, which have historically been the 
only responsive bidders for Type 1, and appear to be the only newspapers which meet the Admin. Code's 
requirements for Type 1 advertising. Although the newspapers did not bid, the San Francisco Newspaper 
Agency (SFNA), agent for the Examiner and Chronicle, has offered the City to extend the existing 
contract with the Examiner. In this situation, the Board may designate either newspaper as the Official 
Newspaper for Type 1, or may consider other options presented in the "Bid Summary, Type 1 
Consecutive Day," on the next page. It appears that option 5 offers the most practical alternative. 

Pursuant to the Admin. Code, Purchasing calculated the points for the Independent using its current bid. 
For information purposes, we calculated points for the Examiner using last years contract extension rfot a 
A summary of the calculation follows: 



Typel: 

Option to Extend 

Examiner' s contract 



Tvpe 2: current bid data 
IndeDendent 



Total Points 
Ranking 
Cost per line 
Est Cost 



Not applicable 
Not applicable 
$2.24 
$32,780.00 



36 
1 

$4.30 
$783,400 



The total estimated cost for Type 1 for the Examiner under a contract extension is $32,780.00. The 
estimated cost for Type 2 for the Independent is $783,400. Ten percent of the total of Type 1 and 2 
would be available for Outreach Advertising. 

City Hall, Room 430 1 Dr. Carlton B. Goodlett Place Tel. (41 5) 554-S743 Fax (415) 554-6717 San Francisco CA 94102-4685 
Home Page: www.ci.sf.ca.us/purchase/ Recycled paper E-mail: Purcr>asing<S>a.sf ca.us 

6 



Attachment 1 
Page 2 ot y 



Gloria Young 
June 3, 1999 
Page 2 



Schedule 



The current contracts for Official Advertising will expire June 30, 1999 and new Official Newspapers must be 
designated prior to July 1,. To meet this June 30 deadline, please calendar these resolutions to allow time for 
Committee meetings, Board approval, signature of the Mayor, and notification to City departments. Due to 
the unusual situation for Type 1 advertising, more than one Committee meeting couid be necessary. 

Definition of the Two Tvpes of Advertising 

The City places two kinds of advertising, which have historically been designated Type 1 and Type 2. A 
shorthand description of them is: type 1 is consecutive day advertising; and Type 2 is nonconsecutive day 
advertising. For Type 1 advertising, the Official Newspaper must publish at least 5 days a week. For Type 2 
advertising, the Official Newspaper must publish at least 3 days a week. 

The formal definitions are as follows: Type 1 advertising is that which must be published on two or more 
consecutive days or which must be published in accordance with §2.103 of the Charter. Type 2 advertising is 
that which must be published one time other than by §2.103 of the Charter, and all other official advertising 
required more than one time, but not more than three times a week. 

Two sample ads, one for each type of advertising, appear in Exhibit A, "Samples of type 1 and Type 2 
Advertising." 

Bid Summary 

Bidders were required to submit typeset samples and other documentation for the evaluation of points pursuant 
to Admin. Code §2.81. No bids were received for Type 1 advertising and one bid was received for Type 2 
advertising. Purchasing received an offer from the SFNA, agent for the Examiner and Chronicle, to provide 
Type 1 advertising under a contract extension with the Examiner. The details of the offer are explained beiow 
in options 4 and 5. Exhibit B is a detailed presentation of bid data (this year and last) showing how the points 
were calculated. . 

Type 1, Consecutive Day 

Because no bids were received for Type 1 advertising, Purchasing is unable to make a recommendation pursuant to the 
guidelines in §2.81. The following options are presented for the Board's consideration. It appears that Option 5 offers 
the most practical, timely and economical solution. 

Options: 

1 . No Official Newspaper for Type 1 . The Board could choose not to have an Official Newspaper for Type 1 
advertising. Purchasing does not recommend this option because of the City's need for Type 1 advertising for 
scheduling special meetings of the Board, Committees, and certain consecutive day advertising such as bond 
issuance's and special elections. 



Attachment 1 
Page 3 of 9 



Gloria Young 
June 3, 1999 
Page 3 

2. Rebid with the same bid requirements. The Board could direct Purchasing to rebid Type 1 using the same bid 
requirements. However, the SFNA has said thai ihe newspapers chose not to bid on the current bid and would not 
bid if there were a rebid. Purchasing contacted other potential bidders and found that only the Examiner and the 
Chronicle meet the Admin. Code's requirements for circulation of 50,000 per week, consecutive day publication, 
and printed in the City. Therefore, Purchasing does not recommend this option because it is almost certain no 
responsive bids would be received. 

3. Rebid and relax some of the requirements of the Admin. Code, such as weekly circulation of 50.000 per week, 
consecutive day publication, or printed in City, so additional newspapers would meet the requirements. Because 
these requirements are in Admin. Code §§2.80 and 2.81 and were passed by the voters, it would require voter 
approval to relax these requirements. Purchasing does not recommend this option because of the complexity and 
time requirements of obtaining voter approval. 

4. Designate the Examiner or Chronicle as the Official Newspaper for Type 1 advertising, because they are the only 
known newspapers that meet the Admin. Code's requirements for circulation of 50,000 per week, consecutive day 
publication, and printed in the City. Although the newspapers did not bid, the SFNA. agent for the Examiner, 
offered to extend the current contract at the rate of S2J24 per line. If the City does not extend the contract, and the 
Board designated the Chronicle or Examiner as official newspaper for Type 1 Advertising, the newspaper would 
not be subject to any of the City's terms and conditions required in the bidding process. 

5. Designate the Examiner as the Official Newspaper for Type 1 advertising by extending the current contract. Under 
this option, the SFNA offers to sign a one page contract extension, which would extend the contract for one year, 
and incorporate the existing terms of the agreement 

It appears this option is the most practical, timeiy, and economical method to meet the City's needs for Type 1, 
consecutive day advertising. 

Following are some of the advantages of the extension: 

• If the contract is extended with the Examiner, the City will have a contract with the City's terms and 
conditions. 

• The Examiner has historically been designated the Official Newspaper for Type 1 advertising. 

NOTE: the Board, last year, selected Option No. 5 to extend the Examiner's 1997 contract to cover FY 98-99. 
Type 2, Nonconsecntive Day- 
One bid was received for Type 2 advertising, from the Independent Pursuant to Admin. Code. Purchasing is 
recommending the Independent as the Official Newspaper for Type 2. nonconsecutive day advertising. 

Equal Benefits Ordinance 

The San Francisco Independent and the San Francisco Newspaper Agency (SFNA) agent for the Examiner and 
Chronicle comply with the Equal Benefits Ordinance. 



Attachment 1 
Page 4 or 9~~ 



Gloria Young 
June 3, 1999 
Page 4 



Bid Evaluation before and after the FY 94-95 Contract 

Up to and including FY 94-95, bidders which were responsive were evaluated on their bid price alone. Purchasing 
recommended the lowest reliable and responsible bidder, and the Board either agreed with the recommendation, 
requested the transaction to be rebid, or took other action. 

In November 1994, Prop. J was passed by the voters, and for the FY 95-96 contract and beyond, bid price is only 
one of several factors which are evaluated and weighted to determine the recommended paper. Also. Purchasing is 
required to recommend the paper with the highest point total. The City Attorney has advised that the Board need 
not accept Purchasing's recommendation and may designate any newspapers) meeting the Charter requirements. 

How the Estimated Cost of the Contract was Calculated 

To estimate how much the City would spend on advertising, Purchasing estimated the number of lines of 
advertising and multiplied by the paper's line price. 

To estimate the lines of advertising for FY 99-00, Purchasing used the average of the total lines of ads placed from 
FY 94-95 through FY 97-98. For each paper, the number of lines was adjusted to compensate for the papers' 
different methods of typesetting. (The same ad would require a different number of lines in the Independent that it 
would in the Examiner.) 

The Estimated Cost includes Official Advertising and Outreach Advertising 

Pursuant to §2.81-2(a) of the Admin. Code, 90% of the cost of Official Advertising will be paid to the Official 
Newspapers and 10% will be withheld and placed into a revenue fund to pay for Outreach Advertising. In 
addition, any money which was withheld and not spent in previous years will be carried forward and available for 
future Outreach Advertising. 

Other Issues 

1. On What Davs Department Should Advertise 

Section 2.81-1 reads in part 

"If the circulation of the official newspapers) varies by day or the cost of advertising varies by day, 
the Purchaser shall direct all City departments to advertise in those editions of the newspar>er(s) with 
the greatest circulation and the lowest advertising cost" 

For type 1, FY 96-97 statistics showed a conflict between highest circulation and lowest cost The Examiner's 
(and Chronicle's) circulation on Sunday are higher but the price is also higher. As a result Purchasing plans 
to advise departments to advertise on Monday through Saturday. 

For Type 2, the Independent's bid price is the same for hs Tuesday. Thursday and Saturday editions, but the 
circulation varies. The Independent's audit report of its circulation shows no San Francisco home circulation 
on Thursday. As a result Purchasing plans to direct departments to advertise on Tuesday (S.F. home circ. 
198,850) and Saturday (128.977) and not on Thursday (0). 



Attachment 1 
Page 5 of 9 



Gloria Young 
June 3, 1999 
Page 5 



These are similar to the same recommendations made last year about low circulation on a specific dav. 
If the Board would prefer Purchasing to give different direction to City departments, please advise. 

2. Current and Historical Data on Bid Prices and Spendine 

Purchasing has gathered information on bid prices and spending for Official Advertising from FY 94- 
95 to the present The information is presented in Exhibit C, Type 2 Bid Prices, Sample Ad Prices, 
and Spending, FY 94-95, FY 99-00". Following is a summary from the exhibit for the current FY and 
the bid prices (and offers) received for FY 99-00. 

FY 98-99 FY 99-00 

Type 1 Cost per line: Examiner $2.04 with contract S2.24 with contract 

extension extension 

Type 2 Cost per line: Independent $4.56 $4.30 

3. Approval of Official Newspapers' Workforce Data and Affirmative Action Plans (Chapter 12B1 

The Human Rights Commission received and approved the Chapter 12B-related materials submitted 
by the Independent 

B. Outreach Advertising 

Purchasing is recommending to the Board that the current contract for Outreach Advertising be extended 
for an additional twelve (12) months through June 30. 2000. 

The basis for this recommendation is as follows: 

• Comply with the board's effort to afford additional minority communities participation in 
the City's outreach advertising contract. 

• Allow outreach newspapers an additional contract term in order to fully participate in the contract 
Several newspapers spent six months to comply with City's Contracting Requirements (12B, etc.) and 
their participation was extensively delayed. 

• Several outreach newspapers are currently in the final stages for approval for contracting 
requirements. 

With this extension of the current contract, the board can achieve its effort to maximize communitv based 
newspaper participat: en in the outreach advertising contract 

Conclusion 

Purchasing looks forward to reviewing this m a tte r with the Committee. If we can provide anv additional 
information before the Committee meeting, please advise. 



Enclosures are listed on next page. 



10 



Attachment 1 
Page 6 of 9 



Enclosures: 

Resolution designating a "to be determined" newspaper as the Official Newspaper for Type 1, 
consecutive day advertising. 

Resolution designating the S.F. Independent as the Official Newspaper for Type 2, 
nonconsecutive day advertising. 

Resolution extending the outreach advertising contract for an additional twelve (12) month 
period through June 30, 2000. 

A. Samples of Type 1 and Type 2 Advertising 

B. Bid Data and Point Calculation 

C. Type 2 Bid Prices, Sample Ad Prices, and Spending, FY 94-95 through FY 98-99 



11 



Attachment 1 
Page 7 of 9 



Exhibit A 



Samples of Tvae 1 and Tvroe 2 Advertisinc 



Tvoe 1 



This category includes 3oard of Supervisors' Notices of Specia.1 
Meetings. The following example is notice of a Special Meetinc 
of the Board. 



■unci of stoat utrnsa 
Kwoor 5u>>c»voor>s 

TluKlt. Uarm 11 OH - L-O w« 
CTumoan. ^d roor. err KrJ 

NoOorraran-aor «r»an dial T-« Board or 



or* Uirtn lfl. UH M L«l wn. 


- »*• 


LffUM Ounwt CTr **<- ^ J " 


frvoca M earrflOV T-a K*o-*t 


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^£»r*fT»| IB Tw OU^A«<l »«C 




trtt Qt and Cjl*-»-t * San frara 


■mat 


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D»«a 


paru M rw< r» Ourur or 
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ra. Z»"**-L 




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Wta. 


■com IS. Ct? Hj*. 




1L_ Tart*. C«rt 




OTltiUlL VI IT. 





Tvoe 2 



This category includes: Notices of 3oard and Committee Meetincs 
Summary of Board Actions; Invitations for Proposals; Invitations 
for Bids; Citations.* The following example is a Notice of a 
Regular Meeting of the 3udget Committee. 



NOTICE OF RECULAR UEFTINC 

BUOCET COUUTTTEE 
SJ. BOARD OF SUPERVISORS 

noou 73. cmr haix 
weonesoat. HMKN t. rsw . isa 



rx. 



SUUMART: 



Fit. 717-aa? (Sapplaraantal 

Budgat/Sanior Eicart Pio-jfiraj 
Haanng to consdar tla tain of r« 
Board or" Sup*r*iaor"a raquaat lar a 
£790.003 »cc«"«na aoproprlaaan fc* 

tbt S«nKx Eicon Proorja. 
(Suparriaari Hwr\, Aflotot. Barman) 
(Condnuad ton ;r2V9a) 

Prim-gyri i. rfWa«T*dFwi.Pcn 

d Son Francraoa] Haonna raovaadrtf 
ralaosa of wind knex. Part, to r» 
amount of 11 (0.000. lot trial 
araanaarairj jnd OMgn ol raaxfiicasom 
to kamats i] W 14 t arxsraaaodata 
drjuska azadl un riiraa ral cjtu (Porft 
F3» 177-«d.«, [HaW Haoaiata 
Aaraa rn anl. Fany Taraatuf Up Gndal, 
Rsdoton juVrjtang It* Part to iVM 
n* SUM rat Caruorrda rlaradxa lar 
dairss Art»r*c. koto work don* or 
onuotd to d* dan* 07 >o*na or 
con»X3orj ararkjnrj on Or* f any 
7ann*-.af UpOjdo Plojae. at PW 1/2. 
(Supwaor IU<ri) 
gl 1SH7-t? LUtHr.r.i FundX 

RadaaatopratBi Aaaoqri Muring, 
racararing iduu al mnd knit. 
B»don*ocm4rt A5.ncT. in is* mtH 
ol Jia.OOO lor ru> Hunan Print 
S^crard. (Roooioiecmont Arjoncj) 
FU IKHU-t poxi * Suptnatn 
Ctopjrtojont BuriaK. *SM*| (burn] 
t> ooroMv t» IS4-9* Bjojat iwpmi 
ol tM OooaitoMnt ol bo Board ol 
S^to' OUl . [Sjo«t»<i Alo<c( 
R» yt.«A^ (UOU. Torooarxy 
Raroaaan ol Orf Hjq R«du»an 
Ajffiourig rto OactiDr of Prcporff to 
•aur Into J Uoaonndoto ol 
UnaWianatna ~n fn w» IWoarul 
Board ol Tnrst**!, lar }!• loraparjqr 
raiocsiai ol ITM ULrra. r« Boa^d ol 



Su9*miari. to« Lj« Iio»j#t. and 
pouibln too Cut Aaom«r. i* .-- Wot 
ll ni origl Vanram Buienc, =.. 

Eaato Ow(J 

R. fa.<M-l Itni ol Raal Prop.7 
at U3 Falvjto S<.| RauMuaon 
a/ftannr^ a «ju ol raal propprfr al 
Oj FalaoBi Svaol lor tta Inroa- 
raroczaan of S)a CM Cxao. Court- 
ratolad AcaMnasxaoao Orwisora. and 
othar Gtr oaoaranona. (Root giuta 
Da« 

F»>'i' <U-a |laau ol Baal Prop. 7 
at m Soranaon Si| Rnnvban 
irtVrLmq a toaso al roal praparn/ 01 
ITS Soavwnm SaooX. aorraoaniT known 
■ t» San Fcancaao Uan (Uart 01. IB 
ft* tawapararf rakoeadon al Co 
daporajaona CDfitoad/ tt Grr Hafl. 
(Rool Eioaa Oct] 

F»a 47-0-1 fPorianc ftova Qonrja . 
Sawstaxai Corxraf RuahrOan 
racoratoondrKj tat Caa Son FronoiGD 
Board ol Svpararjcrs oppro<n> SO" 
parkira] n«B at r» Fitn and Uuion 
Garaj*. fC«cX. al Parkraj and I ra.1< 
FOt 101-«T-in lAppraprtaacn. Pouc 

EAlXXi Pc*c» Ocwrauant. Xj^ra^ 
Forlodora and Soizura aaonatt tor 
i wua k Lk k t atoo BtoJl and karoaiaalon 
at Caa Psica Oaoomart and OzSia 
Anan^l COc ksr IOO-M (Vtdudaa 

BoppJaxt. sanacao alod>«r dapo^aora 
and 00U awpaj aaanri ax ta Poka 
Oaoarooarat and aotarioi and 
■LOndatorr hn«* bonoars br fa 
Obairt Aanmafj Qatafa ICorarolarl 
Fid 101 ■arm lAppnotadon. Darx ol 
rubac Works! Cvdaaonca kavaaaaanraj 
Sl.rrx.ooa Oapartoaant ol PvbGc 
Wodo. poaa Eonsojeraka Salary Bond 
Fund lotoroxt a a ntoi ui tor ckp — 
BBproroRjontx to various Fa a S&aanx. 
(Cauotlarl RO fCZZS 
F-i IQI-o? AQ 4. piasOTWFuiei.Fta 
Dwoortaanr] Hoainr; raoraaknj rriaaM 
ol l a tar a d lunda. Paa Oaparesant. 
1*92 Prop C Fv anprwrwuart Bond 



Procrara. * IM araotfU ol DOa BOO. 
lar dvoort. cansuueaon a^ncra Mn^ 
conatrvedoa lor Tarloui Fka 
3iola.nl Ucllrjaa. (F~<ra 

Oaoa-jaoid fCoranuac koa 13 
Fa. IQ1.a3.jj. [Apptooiljdon. 
OapornantolPUbacWtataJ Caonanca 
arxaacrtaanf dJaotAX o^d rwacraanrj 
iC.700 000. Daoorraaaro al Puobc 
Worta. koa Samnrdaja Caan *i. 
Piojac to ato» ffaa oonaaucaon cd ria 
Ranao Pu-p Sudor, and aau OCX* 
anpio«a«««a to r«a Soutwa« War* 
PrAaaon Conrof Planl kar kaca faar 
'. »9j <U (rundad kraa l«U Sa>« 

(Coraroiaal RO katflal 
F?a IQI-n-aO. lAppiopnaaon. 
Oaaxarmaant ol AonaaAaa) Ordaianca 
anaaprtaano t-~ "71 Caporaaard ol 
Aonoutaro. la ii ja aaa d Stata Cosoana 
Tot laiar aa * kr aqadpraara ponTuaa, 
aaraacaa ol ataar daparlaana and 
Vantlar to oa jp prot a Latad Ganaral 
Fund Raaarra ka lacd raor inj-aA. 
(Caruroaar) RO r-323 
F3-tm-fy*1. (AfporTtoaon. Board ol 
Supanaaara] &«Vunca oppraprfoanrj 
£223.000. Board ol Suparnaan. to 
odow iwnu profaaaional aajai paj 
csnric aon tl< Bradoal aaottiI 
(Zarr>aasa Boaaal onarrrt) b lacal 
roar aaaMt; andad kora Cananl Fond 
Rasara* B1I7.1C1 and itrcaoB al 
raoarana Board raaarros (1107 J07). 
[Canaala^ RO kaflCfl rSaa abn la 
aM»*| 

Fia 1B1-»7T-«?. |A«avopruaon, 
Acodotoj ol Sd*ncaa| Onfaunca 
araprraprtoans SSSUDQ. A Lad aray or' 
Sdancas. to a bxaTlaa avaaatananca 
prcjoraot taadanwaai qlSdantaalpr 
rapaar at Rail rVaaadobraat at tta 

SISO07 Is l»a Canarf Fund Ranarm 
and raaending UiaOOT tea 1 cetot 
Bafj kaw a m a a al projact (Car aUdroaland 
akr£aM rapaa4 at tar Oaporlan ol 
PutaV Wrakl br laol Taor IB5-W. 
(Conkolar) RO rT32J4 



^a BMfj jCrwi» nsona Ci»| 
0<<~noa autaorsraa r. Propraraon X 
CUraa Raaona Oanaaavaa to >mc< 
•^kxd onrrxacr, a N > b M 
svrpota al CAortar ralaaav 
aaaaaaaaaari > 1 to . y Canman. Laval 
Pi: mSU IWo-a Proaara i« 
Fvnrad l^arawtoi a/rvpana rv« Uaror 
■a aopar "r». Orzaer and in. ian. a 
frani koa «»lli Oaoanaaanl al 
Hocana and Urtsan Cr ktaaaaaj. tor a 

ao laaadlad »TJ»aaa taauat aola-. 
ni UJ.Oors \a IM Hoaa Plocrora 
aarracad onoar Tata ■ al ba Kjaorvd 
AfiontJtaa Hocana Ad of ItJQ. Pubic 
^0" r*aaa>« 101-cs and acxaaw^ r. 
r»o»a rVoojoa davTtoaon. kadaac 
coaa ktoaajkattl »fi rat a aaj a aaajaa 
af kvaaa 7 K kaMl ad ba paid 07 
r I 1| Daiat Lu »»d BVask Oam 
k^di. [SvoaTn u j i SKaWr. Akoaq 
Ha tm-ari-at |Approcruson. 
C-oaraaara of Pubfc K»J^ Oda--r» 
Wiurirjaaairj r.«ti.r77. DaporaaaM 
•I 'maV HaJt. h UaaVCof aal 
" anaaa is Son Franaaco Caoaral 
Mraapaofa parOopaaoa k> trar S3 115 
Cilia i».iaa»i.i 11a Suia Portoaau 
r*r*araai ksr tAal raar ITJI-fa 



Oanarat Fond and 3 Ui aiit- r 
*Oar aoa parxaaal urma. RO 
*XS<2 poraaa-jor Ha '*: 

Bapaaa ol aafp al *zn% aaaan r 
OartTj OaVa. Roaa 2JS. Cty Ral, a 
BTtoaJaafa 1 



5*n>l-n - iLTATJ3R.OB« 
CSCaSHSSBO 



Attachment 1 
Page 8 of 9 



Bid Data and Point Calculation 



Exhibit B 



Tvpe 1. Consecutive Dav (Xast year's bid data) 

No bids were received for Type 1 advertising. The calculation for the Examiner were made using 96-97 bid 
data, and assuming the Examiner's contract is extended. 



Examiner 



Data 



Pts. 



Cost of Sample 
Home Circ., SF 
Price, if zero 
Locally owned 
Minority owned 
Woman owned 



None 

167,200 

25c 

yes 

no 

no 



15 
10 

2 





Total 

Ranking 

CogLper line 

FY Estimated cost 



27 

1 



Tvpe 2. Nonconsecutive Dav (Current year's bid data) 



Avail. 
Points 



Independent 



Data 



Pts. 



Cost of Sample 
Home Circ, SF 
Price, if zero 
Locally owned 
Minority owned 
Woman owned 



15 
10 

5 
2 
2 
2 



$679.40 

327,827 

zero 

yes 

yes 

no 



15 
10 

5 
2 
2 
2 



Total 

Ranking 

Cost per line 

FY Estimated cost 



36 



36 
1 

$4.30 
$783,400 



Notes 

The bidder did not qualify for a bid preference under the MBE/WBE/LBE Ordinance. 



13 



Attachment 1 
Page 9 or 9_ 



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14 



Memo to Finance and Labor Committee 

June 24, 1999 Finance and Labor Committee Meeting 



Item 4 -File 99-1210 
Department: 



Item: 



Description: 



Purchasing Department 

Resolution designating certain newspapers for the City's 
outreach advertising, including the Bav View Inc.. the 
Sun Reporter and the Small Business Exchange to be the 
outreach newspapers of the City for the African-American 
community; designating the China Press, the Sing-Tao 
Daily News and The World Journal to be the outreach 
newspapers of the City for the Chinese community; 
designating the El Latino and the EI Reporter to be the 
outreach newspapers of the City for the Hispanic 
community; designating the Philippine Guardian as the 
outreach newspaper of the City for the Philippine 
Community; designating the Korean Times as the 
outreach newspaper of the City for the Korean 
community; designating the Hokubei Mainuchi as the 
outreach newspaper of the City for the Japanese 
Community; and designating the San Francisco Bav 
Times and the Bav Area Reporter as the outreach 
newspapers for the Lesbian/Gay/Bisexual Community. 

Proposition J, which was approved by the San Francisco 
electorate in November of 1994, provided, in part, for an 
Outreach Advertising Fund to be established for the 
purpose of the City placing "outreach advertising" or 
weekly notices of items pertaining to governmental 
operations in periodicals selected to reflect the diversity in 
race and sexual orientation of the population of the City. 
Outreach advertisements include, but are not limited to, 
information about issues that are being reviewed by the 
Board of Supervisors and directly affecting the public. 
Proposition J requires the City to withhold 10 percent of 
the amounts paid for official advertising and deposit the 
monies in the Outreach Advertising Revenue Fund. 



The Purchasing Department advises that pursuant to 
Proposition J, on July 29, 1998 (File 98-1067), subsequent 
to a competitive bid process, the Board of Supervisors 
designated the Bav View Inc. to be the outreach 
newspaper of the City for the African American 
community, the China Press to be the outreach 
newspaper of the City for the Chinese community, and the 
El Latino to be the outreach newspaper of the City for the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

15 



Memo to Finance and Labor Committee 

June 24, 1999 Finance and Labor Committee Meeting 



Hispanic community. On July 29, 1998 (File 98-1068), 
subsequent to a competitive bid process, the Board of 
Supervisors designated that the San Francisco Bav Times 
continue to be the outreach newspaper for the 
Lesbian/Gay/Bisexual community under an existing 
contract, after no bids were received to provide outreach 
advertising to the Lesbian/Gay/Bisexual community. 
Subsequently, the Board of Supervisors also designated, 
without a competitive bidding process, the Sun Reporter 
and the Small Business Exchange to be outreach 
newspapers of the City for the African-American 
community; the Sing-Tao Daily News and The World 
Journal to be outreach newspapers of the City to the 
Chinese community; the El Reporter to be an outreach 
newspaper of the City to the Hispanic community; the 
Philippine Guardian to be the outreach newspaper of the 
City to the Philippine community; the Korean Times to be 
the outreach newspaper of the City to the Korean 
community: the Hokubei Mainuchi to be the outreach 
newspaper of the City to the Japanese community: and, 
the Bav Area Reporter to be an outreach newspaper of the 
City to the Lesbian/Gay/Bisexual community 

Mr. Rick Kimball of the Purchasing Department reports 
that several outreach newspapers, including the Sing Tao 
Dailv News , the Philippine Guardian, the Bav Area 
Reporter and the Hokubei Mainuchi . have had difficulty 
complying with the City's contracting requirements, 
especially the equal benefits requirements. Consequently, 
the Purchasing Department recommends that the 
newspapers previously designated in July of 1998 for the 
City's outreach advertising, namely the Bav View Inc., the 
Sun Reporter , the Small Business Exchange , the China 
Press , the Sing-Tao Dailv News . The World Journal, the 
El Latino , the El Reporter , the Philippine Guardian, the 
Korean Times , the Hokubei Mainuchi . the San Francisco 
Bav Times and the Bav Area Reporter , continue to be 
designated as the newspapers for the City's outreach 
diversity program without a new competitive bid process, 
for the 12-month period from July 1. 1999 to June 30, 
2000. to allow these newspapers additional time to comply 
with the City's contracting requirements. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

16 



Memo to Finance and Labor Committee 

June 24, 1999 Finance and Labor Committee Meeting 

Comments: 1. Pursuant to Proposition J and in accordance with 

Section 2.81-2(a) of the Administrative Code, the City is 
required to withhold 10 percent of the annual amounts 
paid for the City's Type 1 and Type 2 official advertising 
and to deposit these monies into the Outreach Advertising 
Fund. 

The City's official advertising is divided into two 
categories: 

Tvpe 1 - Advertisements for Two of More Consecutive 
Davs 

Official advertising which must be published on two or 
more consecutive days, and all official advertising which 
is required to be pubhshed in accordance with Section 
2.103 of the Charter for special meetings of the Board of 
Supervisors and its standing or special committees. The 
Official Newspaper must publish at least 5 days a week 
for Type 1 Advertising. 

Tvpe 2 - Advertisements for Single or Non-consecutive 
Davs 

Official advertising, which must be pubhshed one time, 
other than one-time advertising related to special 
meetings for the Board of Supervisors and its standing 
and/or special committees, or more than one time but not 
more than three times per week for a specified number of 
weeks. The Official Newspaper must publish at least 3 
days a week for Type 2 Advertising. 

The Purchasing Department estimates that the FY 1999- 
2000 cost for the City's Type 1 and Type 2 official 
advertising will be $805,180. Therefore, the estimated 
amount available for outreach advertising is $80,518, or 
10 percent of the $805,180. 

2. The Purchasing Department states that the City 
Attorney has advised that the Board of Supervisors need 
not accept the Purchasing Department's 

recommendations to award contracts to the above-noted 
periodicals and may designate any periodical which is 
qualified under the Administrative Code. Additionally, 
pursuant to Sections 2.80-1 (b) and 2.81-4 of the 
Administrative Code, the Board of Supervisors may 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

17 



Memo to Finance and Labor Committee 

June 24, 1999 Finance and Labor Committee Meeting 



Recommendation: 



specify additional outreach communities, and may 
authorize additional advertising for communities not 
adequately served by the City's official advertising and 
outreach periodicals. 

3. According to Mr. Kimball, there is a balance of 
approximately $112,000 in the Outreach Advertising 
Fund as of June 21, 1999. 

Approval of the proposed resolution is a policy matter for 
the Board of Supervisors. 



fa 7 . 

ffarvey M. Ro 



XT 



cc: Supervisor Yee 
Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

18